9911796707
TMI Blog2019 (3) TMI 1914X X X X Extracts X X X X X X X X Extracts X X X X ..... rly M/s. Osiyan Impex Co], Hosur having GSTIN No. 33AHJPN2714J1ZE is engaged in the business of trading of Aluminium profiles, hardware, glass etc. They have been availing Input Tax Credit (ITC) on the invoices without receipt of goods and passing on the said credit through raising of invoices/E-way bills without supply of goods. 3. Based on the Intelligence reports received by the Chennai Office of the respondent, it was found that the petitioner is engaged in the bill trading activity i.e. issue of GST invoices without supply of goods and availing of input tax credit without supply of goods in violation of the provisions of Central Goods and Services Tax Act, 2017. The documentary evidence collected by the respondent and the statements r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nough to merely allege that fake invoices has been utilised without supply of goods in violation of the provisions of Act, and the prosecution must also prima facie produce materials to show that it has lead to a wrongful availment of input tax credit. Therefore, the learned Senior counsel submitted that intention to evade tax must be established in order to make it an offence u/s. 132(1)(b) of the Act. 7. The learned Senior counsel further submitted that even though the power of arrest has been given to the Commissioner or any other Authorised Officer u/s. 69 of the Act, the same cannot be used mechanically in all cases. The learned Senior counsel further submitted that the maximum punishment provided for this offence is for a period of f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... itioner has utilised input tax credit by using the name of nearly 15 fake Companies to the total tune of Rs. 98 crores [approximately]. 10. The learned Special Public Prosecutor submitted that the father of the petitioner who is also actively involved in this conspiracy, absconded when he was called for enquiry and till date he is not traceable. The learned Special Public Prosecutor further submitted that there is a big team which is working on this entire fraudulent transactions and which has also been admitted by the petitioner at the time of enquiry, and therefore the petitioner should not be granted bail since he will tamper with the evidence and interfere with the investigation. The learned Special Public Prosecutor submitted that in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ay be prescribed. As per Section 132(1)(b) of the CGST Act, 2017, any person "issues any invoice or bill without supply of goods or services or both in violation of the provisions of this Act or the rules made thereunder 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;" ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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". 12. The above observations made by this Court will squarely apply to the facts of this case also. It is true that the petitioner has attended the enquiry conducted by the respondent and has also given his statements. It is also true that the petitioner has already suffered incarceration for more than 34 days. However, a reading of the entire counter affidavit and the case d ..... X X X X Extracts X X X X X X X X Extracts X X X X
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