2021 (9) TMI 1346 - HC - GST

Seeking grant of bail - claiming of input tax credit without any transportation of goods - triable offence or not - compoundable offence or not - 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 a 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 petitioner, through their counsel, claimed to have been falsely implicated in the case, emphasizing that the offence against them is triable by a Magistrate, compoundable, and carries a maximum punishment of 5 years. The counsel argued that the trial process might be prolonged, and no show cause notices were issued to the petitioner. Therefore, they sought bail under Section 439 Cr.P.C.

On the contrary, the respondent, represented by their counsel, alleged that the petitioner and others were involved in fraudulent activities by creating various firms and claiming input tax credit amounting to ?12.12 Crores without any actual transportation of goods. The total input tax credit claimed by the petitioner and co-accused individuals was stated to be in thousands of Crores. The respondent's counsel also highlighted that the investigation against the petitioner was still ongoing, indicating the seriousness of the allegations.

After considering the arguments presented by both parties and evaluating the circumstances of the case, the judge, without expressing any opinion on the case's merits, decided not to grant bail to the petitioner under Section 439 Cr.P.C. Consequently, the bail application was dismissed.