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TMI Blog2019 (2) TMI 1898X X X X Extracts X X X X X X X X Extracts X X X X ..... nomy of this country would weaken and collapse - If the petitioners are conducting genuine business through the above said companies, they can easily prove during the investigation the actual movement of goods, which will all be borne out by documents. If the department is satisfied regarding the same, the department will leave out the companies belonging to the petitioners and proceed further with the investigation. In the considered view of this Court, in matters of this nature, the department must be given the complete independence to investigate the cases since it involves the national interest. This Court by entertaining an Anticipatory Bail Petition and by imposing certain conditions, should not tie the hands of the department in proceeding further with the investigation since what has been unearthed till now is only the tip of the iceberg and there is a long way to go for the department to find out how long this fake invoices have extended their tentacles. As argued by the learned counsel for the petitioners, it is true that the entire issue is borne out by documents and once the petitioners co-operate for the investigation by submitting all the relevant documents, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Aks Alloys Private Limited, M/s.K.S.Holding Private Limited, M/s. Data Shree Metals and Minerals Private Limited and M/s.Sar Ispat Private Limited are all involved in the very same business of manufacturing of Steel and allied products. The learned counsel submitted that under Section 31(1) of the Act, every registered trader has to issue an invoice containing details regarding the goods, which is being supplied either before or at the time of removal of goods, for supply to the recipient, where the supply involves movement of goods. 4. The learned counsel would further submit that as per Section 41 of the Act, the registered trader is entitled to take credit of eligible input tax as self assessed in his return and such amount will be credited, provisionally to his credit ledger. 5. The learned counsel would further submit that any violation of the provisions would lead to three consequences viz; levy of interest under Section 50 of the Act, recovery of Tax under Section 79 of the Act and imposition of penalty under Section 122 of the Act. The learned counsel would further submit that the authorised officer is empowered to initiate criminal proceedings for the offence commi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... utor further submitted that in the names of the above said three companies, GST invoices have been issued for several crores of rupees without supply of materials and thereby facilitating the buyer of the invoices to avail input tax credit. That apart, they have also received GST invoices from fake companies running to several crores of rupees without receipt of goods/services. Statements were recorded from these persons and it was categorically admitted by them that fake invoices were issued without supply of any goods and only with an intention to enable the receiver to avail input tax credit and from that they took commission on the invoice value. All these persons were arrested and remanded to Judicial custody. 10. The learned Special Public Prosecutor would further submit that on further investigation it came to be known that the companies belonging to the petitioners have received fake GST invoices from the above said accused persons and have availed input tax credit without supply of goods/services. Therefore the petitioners were called to attend an enquiry and without giving a statement and supplying all relevant records, the petitioners have chosen to approach this Cour ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vail the input tax credit and to reduce their cash payment. This is an offence under Section 32(1)(b) 32(1) (c) of the Act. According to the respondent department the petitioners are adopting a modus operandi whereby they make payment to the suppliers of invoices without movement of goods/services through banking channel and get back such amount after payment of agreed commission to the supplier of fake invoices. This according to the prosecution involves loss to the exchequer running to several crores and is against the national interest. 13. The department has taken a very specific stand in this case at paragraph 17 of the Counter filed in these petitions which is extracted hereunder: 17. ...............In the instant case the investigation carried out so far by the Department inter alia revealed that companies managed by the petitioners are involved in the aforesaid offences. Hence the petitioner was summoned by the Department. If the petitioner got the evidences that they are not involved in the above said offences, they would have appeared before the investigating officer and proved their innocence. The department is in the process of identifying the various persons i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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