2019 (8) TMI 577 - DSC - GST

Bail application of professional accountant - whether the accused has been falsely implicated in the present case and that he was only furnishing the GST returns on behalf of the firms which are allegedly involved in the commission of alleged offence - HELD THAT - In the case in hand, the applicant/accused is allegedly involved in the commission of alleged offence and the evidence collected by the department during the investigation also reveals the involvement Of the accused in the commission of alleged offence. As per the allegations the applicant/accused used to create fake firms and he used to fraudulently file tax returns to avail input tax credit (ITC). During the investigation, various firms were found to have been created by the accused in order to commit the alleged offence and to fraudulently claim the input tax credit (ITC). Considering the facts and circumstances, nature of allegations, amount of ITC involved in the present case and the initial stage of investigation, I am not inclined to grant bail to the applicant/accused Girish Sharma at this stage - bail application dismissed.

Summary

Issues: Bail application of accused Girish Sharma involved in alleged GST fraud.

Analysis:
The accused, a professional accountant, was accused of being actively involved in a GST fraud scheme along with others. The department presented evidence, including statements and investigation findings, indicating the accused's significant role in the fraudulent activities. It was alleged that the accused created fake firms, issued fake invoices, and misused login credentials to file fraudulent tax returns, resulting in substantial GST evasion amounting to crores of rupees. The prosecution argued that due to the serious nature of the offense, the accused should not be granted bail.

The defense contended that the accused was falsely implicated and was merely authenticating GST returns on behalf of the firms involved in the alleged offense. The defense highlighted that the accused had been in illegal custody before being produced in court and emphasized that his custodial interrogation was no longer necessary. The defense asserted that the accused had no involvement in any conspiracy and should be granted bail.

After considering the arguments from both sides and examining the evidence collected during the investigation, the court concluded that the accused's involvement in the alleged offense was substantial. The court noted that the accused had created fake firms and fraudulently filed tax returns to claim input tax credit. Given the seriousness of the allegations, the amount of ITC involved, and the early stage of the investigation, the court decided not to grant bail to the accused at that stage. Consequently, the bail application of accused Girish Sharma was dismissed and disposed of.