2019 (12) TMI 1044 - DSC - GST

Grant of bail - alleged irregular availment of input tax credit - fake invoices - retraction of coerced statement - HELD THAT - In the case in hand, the applicant/accused is allegedly found to be involved in the evasion of tax by fraudulently passing on inadmissible ITC on the strength of alleged fake invoice. Ld. counsel for accused submitted that out of the alleged amount of ₹ 7 crores, the accused has already deposited ₹ 2 crores. The accused has been in custody JC since 16.11.2019 and the custodial interrogation of the applicant/accused is no more required. The applicant/accused Sudhir Kumar Aggarwal is hereby admitted to bail on furnishing personal bond in the sum of ₹ 2 lac with one surety of like amount - bail application disposed off.

Summary

Issues Involved: Bail application in a case involving evasion of GST through fake invoices.

Analysis:
In the judgment delivered by the District/Sessions Court Patiala House Court, the bail application of the applicant/accused was considered. The applicant's counsel argued that the applicant had been falsely implicated and had cooperated with the investigation. It was highlighted that the accused was coerced into giving a statement, which was later retracted. The counsel contended that the accused was wrongly charged under the CGST Act without conclusive evidence of GST evasion through bogus ITC. Additionally, it was mentioned that the accused had deposited a significant amount under protest to demonstrate good faith. The applicant's counsel requested bail for the accused.

On the contrary, the Senior Standing Counsel for the department opposed the bail application, alleging that the accused fraudulently availed Input Tax Credit (ITC) amounting to ?7.90 crores based on fake invoices. The department's counsel argued that releasing the accused on bail could lead to witness tampering due to the ongoing investigation at an initial stage.

The court observed that the accused was allegedly involved in tax evasion by passing inadmissible ITC based on fake invoices. It was noted that the accused had already deposited a portion of the alleged amount and had been in judicial custody since a specific date. Considering the circumstances, the court granted bail to the applicant/accused on the condition of furnishing a personal bond and surety, joining the investigation when required, refraining from tampering with evidence or influencing witnesses, and attending all court proceedings. The accused was also prohibited from leaving the country without prior court permission.

Ultimately, the bail application was disposed of, and the court directed the concerned Jail Superintendent to be informed of the order.