2020 (1) TMI 1516 - DSC - GST

Grant of Regular Bail - fraudulent availment of irregular credit - issuance of fake invoices - HELD THAT - As per complainant, accused deprived the exchequer of more than ₹ 16 crores. There are 31 witnesses in this case. It cannot be said that the department is delaying the proceedings. No ground for bail is made out. Bail application dismissed.

Summary

Issues: Regular bail application in a case involving alleged creation of fake firms for fraudulent GST activities, delay in trial proceedings, and substantial loss to the exchequer.

Analysis:
1. Allegations and Investigation: The accused filed a third bail application in a case where he was accused of creating seven fake firms to circulate fake invoices for GST credit. The Directorate GST Intelligence conducted searches at various premises, finding incriminating material and witness statements linking the accused to the fraudulent activities.

2. Arguments for Bail: The counsel for the accused argued that the accused had been in custody for six months, was not a flight risk, and should be granted bail as per the principle that bail is the rule and jail is the exception. It was highlighted that despite the passage of more than 60 days since the first evidence date, charges had not been framed, invoking Section 437(6) of the Code of Criminal Procedure.

3. Prosecution's Opposition: The Public Prosecutor, supported by the complainant's counsel, opposed the bail application, citing a substantial loss of ?16 crores to the exchequer due to the accused's actions. Concerns were raised about the accused potentially absconding if released on bail, emphasizing that the trial had not yet started and there were 31 witnesses to be examined.

4. Judgment: The court considered the arguments presented and noted the significant financial loss and the number of witnesses involved in the case. It was observed that the trial proceedings were not being unduly delayed by the prosecution. Consequently, the court held that no grounds for bail were established and dismissed the bail application, directing the file to be tagged with the main case file.

This comprehensive analysis of the judgment highlights the key aspects of the case, including the nature of the allegations, arguments for and against bail, and the court's reasoning for dismissing the bail application based on the substantial loss to the exchequer and the number of witnesses involved in the case.