2021 (9) TMI 1345 - HC - GST

Seeking grant of bail - claiming of ITC without any transportation of goods - HELD THAT - In the facts and circumstances of the present case and looking to the seriousness of the offence(s) alleged against the petitioner without expressing any opinion on the merits of the case, it is not considered fit case to enlarge the petitioner on bail under Section 439 Cr.P.C. This bail application stands dismissed.

Summary

Issues: Bail application under Section 439 Cr.P.C. in connection with offence(s) under Section 132 CGST Act, 2017.

Analysis:
The bail application was filed by the petitioner under Section 439 Cr.P.C. in connection with an offense under Section 132 of the CGST Act, 2017. The petitioner claimed to be falsely implicated and highlighted that the offense against them is triable by a Magistrate, compoundable, and carries a maximum punishment of 5 years. The petitioner's counsel argued that the conclusion of the trial might take a long time and emphasized that no show cause notices had been issued to the petitioner. On the other hand, the respondent's counsel contended that the petitioner, along with others, had allegedly claimed input tax credit amounting to ?20.89 Crores without any actual transportation of goods, with the total credit claimed in the case running into thousands of Crores. The investigation against the petitioner was stated to be ongoing. However, the court, after considering the submissions from both sides and the seriousness of the alleged offenses, decided not to grant bail to the petitioner under Section 439 Cr.P.C. The court explicitly mentioned that its decision did not express any opinion on the merits of the case but deemed it unfit to release the petitioner on bail. Consequently, the bail application was dismissed by the court.