9911796707
TMI Blog2022 (10) TMI 772X X X X Extracts X X X X X X X X Extracts X X X X ..... relief in such cases - the court has to strike a balance to ensure that no unwarranted abuse of process is allowed to impinge upon life and liberty of applicant and at the same time also to ensure that investigation is not hampered, procedure of administration of justice is not adversely impacted. In the present case also taking into consideration overall facts and circumstances and the gravity of the offence under CGST Act, it is found that once the necessary documents, information has already been provided to the Department regarding the alleged evasion of tax under Input Tax Credit facility, if at all applicant is required to join the investigation, he to my mind is entitled to protection against any possible arrest, particularly when officers/officials of the companies have been rendering all necessary information/ documents to the Department; the summon issued to the applicant does not enumerate any details required from him by the Department - it is directed that in the event of any possible arrest of the accused, he be released on bail upon furnishing of bail bond for Rs.50,000/- with two sureties each in like amount and subject to the condition imposed. Bail Application al ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... enough to deprive personal liberty of accused. It is stated that there is no assessment made in the present case against the applicant till date. As such it is prayed that till the accused joins the proceedings/investigation before the CGST Department, he may be protected from possible arrest. Hence the application. Upon notice Department has filed the reply stating therein that applicant has been involved in availment of ITC without receipt of goods in contravention to the provision of section 16 of CGST Act. It is stated that both the above mentioned companies are registered under GST jurisdiction of CGST Meerut Commissionerate, 12 suppliers of the above said companies were found to be non-existent regarding which ITC involved is around Rs.35 crores. Among those non-existing entities some of the entities by name M/s M.K. Chemicals, M/s Gurukripa Impex, M/s Sidhivinayak Chemtech. Pvt. Ltd, M/s Tarun Chemicals are being controlled and managed through employees of M/s Best Crop Science Pvt. Ltd. It is stated that even as per e-way bill data analysis it was found that there was circular transactions among M/s Sidhivinayak Chemtech Pvt. Ltd., M/s M.K. Chemicals and M/s Gurukripa C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se where ITC has been availed in contravention of CGST Act by creating 12 non-existing entities and creating invoices through those entities to avail ITC without actual supply of goods. He submits that from transactions of those entities a sum of Rs.35 crores has been availed as ITC. He further submits that documents furnished uptil now had indicated that there were circular transaction among non-existing entities. As such when statement of different employees were recorded during investigation, it came to the knowledge of the Department that relevant information is available only with applicant, therefore he was called upon to join the proceedings as per law and rules. Having considered the submissions at bar and having gone through the record carefully. At the outset it be noted that application is annexed with notice received to the applicant, at page no.16 stated to have been issued by Superintendent, Principal Commissioner, CGST Meerut in terms of section 70 of CGST Act. Perusal of the said notice/summon does not show the reason why it has been served. As per section 70 of CGST Act power has been given to the Department to summon a person concerned to give evidence and to pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nnot be ignored to determine the heinousness of the offence. To conclude, in my view the offences under the Act are not grave to an extent where the custody of the accused can be held to be sine que non." Similarly reference can also be given of observation made by Hon'ble High Court in Tarun Jain's case (supra) as : "55. Custodial interrogation in the instant matter is Supreme Court in numerous decisions. 59. In view of these facts and circumstances and in light of the provisions of law, this Court is inclined to allow the anticipatory bail application with some stringent conditions in view of the prior conduct of the Petitioner." Perusal of the above said judgment of Hon'ble High Court would show that it relied upon the judgment of Hon'ble High Court of Karnataka In Shravan A. Mehra v. Superintendent of Central Tax, Anti evasion, Commissionerate Manu/KA/0875/2019. In that matter, bail was granted in relation to offences under the Act in view of the fact that the offences were not punishable with imprisonment for more than five years. In that case, the petitioner was alleged of having obtained Invoices from the Company of the respondent without delivery of the goods and the ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
