2021 (12) TMI 947 - DSC - GST

Seeking grant of Regular bail - availment and utilization of fake input tax credit - non filing of challan / complaint against the applicant - applicability of Chapter XII Cr.P.C. - HELD THAT - Taking note of the fact that the allegations against the applicant/accused are serious in nature ; applicant is involved into the heinous economic offence of utilizing the fake ITC causing loss to the government exchequer ; additionally investigation is at crucial stage ; number of persons involved into the present case including the brother of the present applicant are absconding and evading the process of law, therefore, bail cannot be granted at this juncture to the applicant/accused. Application dismissed.

Summary

Issues:
Grant of regular bail under Section 439 Cr.P.C.

Analysis:
The applicant filed a bail application seeking release, arguing that his previous application was rejected without considering relevant factors like custody period and absence of charges against him. He claimed to have been illegally detained, tortured, and forced to sign a statement by department officials. The applicant's counsel emphasized his innocence, legitimate business activities, and compliance with tax laws, presenting evidence such as bank statements and export-related documents to support the claim. The counsel contended that the department's actions, including recording statements under CGST Act, were unlawful. Furthermore, the applicant's family circumstances, with elderly parents needing care, were highlighted as grounds for bail.

The department opposed the bail application, asserting that the investigation revealed the applicant's involvement in utilizing fake Input Tax Credit (ITC) through non-existent firms. They presented evidence indicating discrepancies in export-related transactions, fake companies, and misuse of ITC worth a significant amount. The department argued that the applicant was the mastermind behind the economic offense and that other accused individuals, including the applicant's brother, were absconding. They emphasized the seriousness of the allegations, ongoing investigations, and the risk of witness tampering if bail was granted.

The judge, considering the gravity of the allegations, the stage of investigation, and the absconding of key individuals related to the case, denied the bail application. The judge highlighted the economic nature of the offense, potential loss to the government, and the need to prevent interference with the investigation as reasons for rejecting the bail. The decision was made based on the seriousness of the charges, the crucial stage of the investigation, and the risk of influencing witnesses or tampering with evidence if bail was granted. The bail application was dismissed, and the applicant was not granted bail at that juncture.