2023 (8) TMI 1588 - SCH - GST

Wrongful ITC Credit - petitioner accused had agreed to deposit 10% of the amount allegedly claimed as Wrongful ITC Credit - HELD THAT - The basis for the FIR in this case was alleged claim for wrongful ITC - which the revenue alleged was to the extent about Rs.12 Crores. That appears to be a matter of adjudication which is to be done in accordance with the provisions of the Central Goods and Services Tax Act through the adjudicatory process. There is no information forth coming as the fate of those proceedings whether show cause notice was issued and if so what is the result thereof. The counter affidavit of the revenue filed before the High Court is a part of the record. It reiterates the contents of the complaint and the alleged wrongful credit claimed by the petitioner. The interim order dated 30.01.2023 is hereby confirmed. The petitioner shall be enlarged on bail subject to such terms and conditions as the trial Court may impose other than the condition of requiring pre-deposit - Petition allowed.

Summary

The Supreme Court allowed the petition and confirmed the interim order dated 30.01.2023, granting bail to the petitioner without requiring pre-deposit. The Court rejected the request for further extension of time for filing a counter affidavit. The basis for the FIR was alleged wrongful ITC claim of about Rs.12 Crores. The Court emphasized that onerous bail conditions should be imposed only in exceptional circumstances.