2021 (7) TMI 992 - HC - GST

Grant of Regular Bail - input tax credit - fictitious firms - fake and bogus invoices - section 132 of the Central Goods and Services Tax Act, 2017 - HELD THAT - The Court looking to the seriousness of the offence and lack of change in circumstances, rejected the application of the applicant. In the considered opinion of this court, after the aforementioned orders were passed rejecting the applications, no substantial change in circumstances or any exceptional aspect has been pointed out by the applicant, which would warrant his release on bail under the provision of section 439 of the Cr.P.C. Application dismissed.

Summary

Issues:
Regular bail application under Section 439 of the Code of Criminal Procedure, 1973 in connection with an offense under section 132 of the Central Goods and Services Tax Act, 2017 involving alleged tax credit fraud through fictitious firms.

Analysis:
1. The applicant sought regular bail in connection with a case involving allegations of obtaining tax credit through fictitious firms. The principal accusation was that the applicant obtained tax credit through fictitious firms for goods not sold, amounting to about ?60 Crores.

2. The defense argued for bail citing the release of co-accused and the recovery of a significant amount. The defense highlighted the applicant's prolonged detention of around 16 months and the recovery of approximately ?40,00,00,000, urging the court to grant bail.

3. The court noted that this was the second successive bail application after previous rejections. The court referred to the rejection of the earlier bail applications due to the seriousness of the offense, lack of change in circumstances, and the ongoing investigation involving multiple beneficiary firms and a substantial loss to the public exchequer.

4. The court emphasized that no substantial change in circumstances or exceptional aspects were presented in the current application to warrant the applicant's release on bail. Considering the seriousness of the offense, lack of change in circumstances, and the potential threat to the investigation, the court rejected the bail application.

5. Ultimately, the court rejected the regular bail application, highlighting the gravity of the offense, lack of significant changes in circumstances, and the need to maintain the integrity of the ongoing investigation. The court's decision was based on the principles of law and the specific facts and circumstances of the case.