2022 (4) TMI 117 - DSC - GST

Seeking grant of anticipatory bail - passing on of fake ITC - HELD THAT - In this case a huge amount of passing on of fake ITC has been alleged against the accused. He stated to have not provided the entire information during the investigation and after joining the investigation only once, he did not turn up. Apart from his involvement in the fraudulent ITC, it is also been alleged that there is his own GST liability to the tune of ₹ 1.7 crores. His previous involvement in another criminal case of similar nature registered by EOW, Rohtak is also brought into the notice. Investigation in this case still going on and GST department is required to interrogate the accused to unearth the exact level of involvement of the accused in the entire offence in furtherance of recovery of hard disk and the server from the co-accused. The offence alleged against the accused is serious economic offence in which ITC was allegedly availed by different persons at the behest of the accused. Accused stated to have been managing the show from behind and has been the beneficiary of fraudulent availment of ITC - no ground for anticipatory bail is made out - Application dismissed.

Summary

Issues:
- Anticipatory bail application based on false implication and lack of evidence
- Opposing bail on the grounds of custodial interrogation necessity and past criminal involvement
- Allegations of passing fake ITC, identity theft, money laundering, and involvement in a syndicate
- Serious economic offense related to fraudulent ITC availment

Anticipatory Bail Application:
The accused filed for anticipatory bail, claiming false implication and lack of evidence. It was argued that the accused cooperated with the investigation, provided necessary information, and is not required for custodial interrogation as evidence has been obtained. Reference was made to a previous judgment for support.

Opposition to Bail:
The Special Public Prosecutor opposed bail, citing the need for custodial interrogation based on a search at the accused's residence. The accused's failure to join investigations despite summons was highlighted. Past criminal involvement in a massive GST fraud case and statements of co-accused were presented as evidence against the accused.

Allegations and Investigation:
The accused, along with associates, was accused of passing fake ITC, identity theft, money laundering, and involvement in a syndicate for ineligible ITC availing. The accused's non-cooperation in providing information, involvement in fraudulent ITC passing, and personal GST liability were emphasized. The ongoing investigation aims to determine the accused's level of involvement and recover evidence from co-accused.

Judgment:
The court found the offense to be a serious economic one, alleging fraudulent ITC availment orchestrated by the accused. Considering the gravity of the offense, the accused's role, and the necessity of custodial interrogation for further investigation, the court dismissed the anticipatory bail application. The application was deemed groundless, leading to its dismissal with a dasti copy of the order to be provided.