2019 (1) TMI 1285 - DSC - GST

Grant of Bail - allegations that they were involved in generation of fake invoices by floating dummy companies/firms in the name of poor persons/third persons and of passing on the input tax credit to unscrupulous persons/firms/companies without actual supply of goods - Held that - In the present case, there are serious allegations against the applicant. Vide detailed order dated 22.12.2018, the application for cancellation of bail of applicant was allowed by Sh. Satish Arora, Id. ASJ, New Delhi and this order was affirmed by the Hon ble High Court. No ground for bail is made out - Bail application is dismissed.

Summary

Issues involved:
1. Bail application filed by the applicant.
2. Allegations of involvement in generating fake invoices and tax evasion.
3. Cancellation of bail by the Sessions Court and High Court.

Analysis:
1. The applicant's counsel argued that the recovery had been made, all relevant material seized, and the applicant had cooperated in the investigation. It was highlighted that the applicant, a respected businessman without criminal antecedents, is the sole breadwinner for his family. The counsel emphasized that the case is primarily document-based, and the witness relied upon by the department is not reliable. The applicant's bail was sought based on these grounds.

2. The standing counsel for the department countered by stating the serious allegations against the applicant, including involvement in generating fake invoices to pass on undue ITC advantage, resulting in tax evasion amounting to crores. The department provided details of the tax liability, indicating a significant amount involved in the fraudulent transactions. The department had previously filed for bail cancellation, which was granted by the Sessions Court and upheld by the High Court. The seriousness of the allegations and the substantial amounts involved were stressed to oppose the bail application.

3. The court noted the detailed allegations against the applicant, involving a substantial amount in fictitious sales and tax evasion. The cancellation of bail was based on the gravity of the charges and the involvement of the applicant in the fraudulent activities. The Sessions Court's decision to cancel bail was affirmed by the High Court, indicating a thorough review of the case and a determination that no grounds for bail were established. Consequently, the bail application was dismissed based on the findings and decisions of the courts at both levels.