2022 (11) TMI 27 - HC - GST

Seeking grant of bail - cyber crime - fake/fraudulent document upoladed on GST Portal - alleged that GST registrations were obtained by using fraudulent means by some miscreants - HELD THAT - Considering all the facts and circumstances of the case, arguments advanced by counsel for the parties, nature and gravity of allegation it is noticed that during investigation it has been found that forged GST firm namely Shanti Impex, M/s A.N. Enterprises, M/s Kasyap Enterprises, M/s Rahul Enterprises has been operated by Suleman Karim Ali Meghani and present applicant Amir Halani, other co-accused persons are still absconding, therefore, there is strong apprehension that if applicant is released on bail, he may temper with the prosecution evidence and he may also abscond. Hence in view of the prima facie evidence available on record, this Court is not inclined to grant bail to applicant. This bail application filed by applicant under section 439 of Cr.P.C. is accordingly dismissed.

Summary

Issues: Bail application under Section 439 of Cr.P.C.

Analysis:
The petitioner, a Senior Advocate, filed a bail application under Section 439 of the Code of Criminal Procedure, 1973, as he has been in jail since 6.6.2022 in connection with a case involving offenses under various sections of the IPC and the IT Act. The prosecution alleged that fraudulent GST registrations were obtained using forged documents and identities of random persons, leading to the passing of fake input tax credit to defraud the exchequer. The Cyber Cell Indore conducted an investigation and registered a case against the applicant and other co-accused individuals for preparing forged firms registered in the name of unknown persons.

The learned counsel for the applicant contended that the applicant is innocent and falsely implicated, citing lack of legal evidence connecting him to the crime. The defense argued that the trial's final conclusion would take a considerable amount of time, emphasizing a judgment passed by the Hon'ble Apex court in a similar case. The applicant, a permanent resident of Gujarat, sought bail.

On the contrary, the Public Prosecutor opposed the bail application, stating that there is sufficient prima facie evidence linking the applicant to the cybercrime, resulting in a significant loss to the government. The prosecution highlighted that many co-accused individuals are still absconding.

After perusing the case diary and the lower court's order, the High Court noted that forged GST firms were operated by the applicant and other co-accused persons, with some still absconding. Due to the strong apprehension that releasing the applicant on bail might lead to tampering with evidence and potential absconding, the Court denied bail based on the prima facie evidence available on record. The bail application under Section 439 of Cr.P.C. was consequently dismissed, and a certified copy was ordered as per rules.