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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 ..... l have involved themselves in issuing fake invoices without actual supply of Goods/Services and also receiving fake invoices without receipt of goods and avail input tax credit to cheat the exchequer. In the instant case, it is the specific case of the prosecution that the concerned companies have involved in issue of fake invoices without supply of goods and also received fake invoices without receipt of goods and thereby all the accused persons have committed offences under Section 132(1)(b) and 132(1) (c) of CGST Act, 2017. [CGST Act, 2017 - hereinafter referred as "the Act"]. By committing the offence, the exchequer has been put to a huge loss running to several thousand crores, which according to the prosecution goes against the very i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... th fine and the authorised officer is also empowered to arrest the accused persons by virtue of the powers conferred under Section 69 of the Act. 6. The learned counsel for the petitioners submitted that the Act is a recent enactment with various unresolved issues and the respondent is proceeding further to prosecute the petitioners on mere assumptions and surmises on the ground that the petitioners are involved in issuing invoices without supply of goods/services. The learned counsel would submit that the petitioners have attended the enquiry and given statements and also submitted voluminous documents to show that there was movement of goods from the factory and there was no requirement for the petitioners to indulge in utilising fake in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... from three other persons. 9. The learned Special Public Prosecutor 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 arre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ade there under leading to wrongful availment or utilisation of input tax credit or refund of tax". As per Section 132 (1)(c) of the CGST Act, 2017, any person "avails input tax credit using such invoice or bill referred to in clause (b);" As per Section 13(1)(i) of the CGST Act, 2017, "in cases where the amount of tax evaded or the amount of input tax credit wrongly availed or utilised or the amount of refund wrongly taken exceeds five hundred lakh rupees, with imprisonment for a term which may extend to five years and with fine;" Further as per Section 132 (5) of the CGST Act, 2017, the offences specified in clause (a) or clause (b) or clause (c) or clause (d) of subsection (1) and punishable under clause(i) of that sub-section shal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tioners 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 involved in the above such offences and are being summoned to unearth the possibilities of revenue leakages created by these offenders". 14. The enactment in question has come into force very recently with a laudable object of one country one tax. Therefore wherever the department finds that certain provisions in the Act is misused by creating fake invoices and input tax credit is being availed witho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tting all the relevant documents, they should not be unnecessarily arrested. However, it is a settled proposition of law that this Court while considering a petition for Anticipatory Bail has to necessarily taking into consideration the nature and gravity of the accusation in a given case. When a case involves serious offences, grant of Anticipatory Bail by itself will cause prejudice to the investigation. Where the accused persons are charged of violation of CGST Act, involving colossal loss of revenue to the exchequer and the investigation is at a very nascent stage, prudence demands that this Court should lay of its hands from the investigation and allow complete independence to the prosecuting agency to proceed further with the investig ..... X X X X Extracts X X X X X X X X Extracts X X X X
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