9911796707
TMI Blog2021 (5) TMI 674X X X X Extracts X X X X X X X X Extracts X X X X ..... trating fraud and through paper transactions have claimed the relief to the tune of more than ₹ 55 Crores. The case is at preliminary stage and enlarging the petitioner at this point of time on bail would have a detrimental effect on the investigation. Further, without his role as middleman, the whole crime could not have been perpetrated. The nexus of very many persons within the administrative framework could not be ruled out and a proper and full-fledged investigation is necessary to unearth the larger conspiracy involved behind the above. It is not as if the petitioner has been under incarceration for a long length of time. In such a backdrop, this Court is of the considered view that the prayer for grant of bail by the petitio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s the case of the petitioner that he was detained illegally from 16.3.2021 and only pursuant to the complaint dated 18.3.21, the petitioner was arrested on 19.3.21. It is the further case of the petitioner that he was merely a middleman in procuring the credentials of the defunct companies and passing on the same to other persons for commission and the petitioner is in no way involved in the claiming of exemptions by utilising the said credentials and the petitioner had not filed any statutory returns and is not a beneficiary of the said tax evasion. It is the further stand of the petitioner that arrest u/s 132 (5) of the CGST Act is to be made only after assessment is made and in the case on hand, no assessment has been made by the respond ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... itioner is vehemently opposed by the learned Special Public Prosecutor appearing for the respondent by submitting that the petitioner, knowingly, had indulged in the said act of providing the credentials of the defunct companies for monetary value which was utilised in getting tax remission by the said individuals without there being any supply of goods. It is the further submission of the learned Special Public Prosecutor that the petitioner had not only received illegal gains from several persons, but has also utilised his mobile number for communication for opening various bank accounts and also filed returns by engaging auditors. The entire transactions have been vouched for by the petitioner and, therefore, it is not open to the petiti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at the said credentials would be used for fake/fraudulent transactions. The petitioner cannot feign ignorance on this aspect. Once the petitioner, on clear and proper thinking, has obtained the credentials of defunct firms and handed over the same to the other persons for being misused for cheating the exchequer, the petitioner cannot absolve himself from the said offence by holding a lifeline that he is only a middleman. 10. Further, it is to be pointed out that where the magnitude of the economic offence is of enormous proportion, the Hon'ble Supreme Court has cautioned that the High Courts should be very circumspect in granting bail and if at all bail is to be granted, the same should be clothed by well considered and well founded ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... High Courts against grant of bail, where probe is yet to be completed, more so in cases involving GST. In fact, to put it pointedly, the facts of the case are identical to the case on hand and for better appreciation, the order of the Hon'ble Supreme Court is extracted hereunder :- The allegation against the petitioner is that he has created about 555 fake firms and has committed fraud to the tune of ₹ 74,00,00,000/- (Rupees seventy four crore only). Mr. K.M. Natraj, learned additional solicitor general, submits that the investigation is still pending and more number of fake firms created by the petitioner are being detected. It is not in dispute that the maximum punishment to be imposed on the petitioner, if convicted, is f ..... X X X X Extracts X X X X X X X X Extracts X X X X
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