9911796707
TMI Blog2022 (8) TMI 367X X X X Extracts X X X X X X X X Extracts X X X X ..... e proprietor of M/s S. B. Sales Corporation, was indulging in availing and passing of fraudulent Input Tax Credit (ITC), a search was conducted on 4th and 5th March, 2021. It transpired that co-accused Pintu Itkare was working for the applicant herein. It was further revealed that 18 firms were created by the applicant for the purpose of passing ITC without actual supply of goods in contravention of Section 16 of the CGST Act, 2017. Those 18 firms, allegedly, indulged in issue of fake bills without actual supply of goods and availed ITC to the tune of Rs.46.50 Crore (approximately) and further passed on ITC amounting to Rs.41.91 Crore (approximately) without actual supply of goods. The applicant did not appear in response to the summons. 3 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Joshi, the learned counsel for the applicant and Mr. Jitendra Mishra, the learned counsel for the respondent No. 1, at some length. With the assistance of the learned counsels, I have perused the material on record. 7. The learned counsel for the applicant submitted that in an identical action initiated by the State GST authorities, this Court has already protected the applicant by an order dated 25th November, 2021. The same dispensation deserves to be made available in this proceedings as well, as only a summons under section 70 of the CGST Act, 2017 has been issued. It was further submitted that the authorities have yet not determined the liability for the alleged evasion of tax. Since, there is no demand notice, the applicant cannot be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ons. 10. The respondent No.1 has adverted to the facts, which have allegedly been unearthed, during the course of investigation, in the affidavit-in-reply in detail. The modus operendi is adverted to, the names of the fictitious firm have been furnished, with the details of transactions, prima facie establishing the nexus of the applicant with those firms. The money trail is indicated in paragraphs 19.5 and 19.6 of the affidavit in reply. In paragraph 20, the respondent has culled out the tentative out come of the investigation so far, to the effect that 21 fake entities, including M/s Prakash Steel, M/s Agarwal Enterprises and M/s Shivkiran Steel Private Limited, (with reference to whom specific details have been furnished) have been iden ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Shri. Chandrapal Singh and other vs. Commissioner CGST & Central Excise, Navi Mumbai Commissionerate and another LD/VC/ABA NO.319/2020., wherein this Court had repelled the submission that unless the returns are verified and liability determined, prosecution cannot be lodged. This Court also found no substance in the submission that lodging a first information report is a condition precedent. The observations in paragraphs 14 and 15 are material and hence extracted below: "14. Let me now deal with the applicants' contention that, unless returns GSTR-3B are verified and liability is determined, prosecution cannot be lodged. Chapter-XIX of the CGST Act, spells out offences committed by the registered person and penalties to be imposed; whe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion 132 of the CGST Act. I have culled out the facts emerging from the notings herein above." 13. Mr. Mishra, the learned counsel for the respondent No. 1, invited the attention of the Court to a number of orders passed by this Court wherein in the backdrop of the allegations of creating fake entities to avail and pass of ITC without actual supply of goods, this Court has refused to exercise the discretion namely Dev Adania vs. State of Maharashtra & Anr. Anticipatory Bail Application No.2030/2021, dtd.23/9/2021. and Ajjimullah Naim Choudhary & another vs. The State of Maharashtra Anticipatory Bail Application No.1087/2022, dtd.21/4/2022., Naitik Paresh Mawani vs. The Superintendent, O/o. Commissioner of CGST and C.Ex. Mumbai & Anr. Antic ..... X X X X Extracts X X X X X X X X Extracts X X X X
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