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TMI Blog2025 (3) TMI 57X X X X Extracts X X X X X X X X Extracts X X X X ..... had given the separate lists of suppliers and recipients of their above noticed two firms. The complaint/ charge sheet dated 13.12.2024 though is silent about number of the beneficiaries, but according to the additional counter affidavit dated 10.2.2025, total 1267 persons received the benefit of fraudulent Input Tax Credit, however neither their particulars have been given in the additional counter affidavit nor the amount of commission received by the applicants has been disclosed. The sole piece of evidence relied upon by prosecution regarding involvement of accused-applicants with fake firms is the confession of the applicants recorded under Section 70 Central Goods and Services Tax Act, 2017, but the truthfulness of the same would be tested during trial, which is yet to commence. Admittedly, the alleged offences are triable by magistrate and carry a maximum punishment of five years. As far as the investigation relating to the applicants is concerned, the same has been completed, as the complaint/ charge sheet dated 13.12.2024 has been filed against the applicants and their firms, whereupon the cognizance order dated 13.12.2024 has also been passed. However, the charges aga ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and their statements were recorded under Section 70 Central Goods and Services Tax Act, 2017 on 16.10.2024 and 17.10.2024, wherein they admitted their engagement in issuance of invoices without supply of material. According to Sachin Singhal and Vikrant Singhal, who are directors of M/s Siwon Enterprises Pvt. Ltd. and M/s MS Singhal Trading India Pvt. Ltd., they had availed Rs 24.12 crores Input Tax Credit and passed on Input Tax Credit of Rs.23.89 crores by issuing invoices without supply of goods. Similarly, the statement of accused Gourav Jain was recorded, who admitted that he had availed fraudulent Input Tax Credit of Rs.67.47 crores and passed on Input Tax Credit of Rs.63.57 crores through his five firms/companies without supply of relevant goods. The complaint also reproduces the statements of the accused persons. Further, it is averred in the complaint that the data of these fraudulent transactions is contained in a google drive, maintained by an employee Ram Gopal @ Deepanshu, who in his statement, admitted that the accused persons have been preparing false invoices for availing/ passing on Input Tax Credit. As per the allegations, the accused are mastermind of running a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... passed on Input Tax Credit of Rs.21.48 crores and Rs.2.41 crores, respectively. Learned counsel has drawn the attention of the Court to the statements of applicants recorded on 16.10.2024 and submitted that the details of suppliers and recipients of the firms were provided to the prosecution, and the allegations regarding involvement of the applicants through other fake firms is not supported with any evidence. 6. Learned counsel further argued that the transactions in respect of ineligible Input Tax Credit through the other firms cannot be linked with the applicants and the allegations of receiving commission by the applicants is not supported with any evidence, except the admission/confession of the accused suffered in custody. According to learned counsel, the applicants are confined in prison since their arrest on 17.10.2024, and the trial has not yet commenced, which is likely to consume considerable time, therefore, he prays for bail. 7. In support of his submissions, learned counsel for applicants has relied upon the decision of the Hon'ble Supreme Court in Rajiv Jindal Vs. State of U.P., passed in Petition(s) for Special Leave to Appeal (Crl.) Nos.13548-13550 of 2024 and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ring their submissions, this Court finds that as per the prosecution, the accused-applicants are directors of M/s Siwon Enterprises Pvt. Ltd. and M/s MS Singhal Trading India Pvt. Ltd., who were allegedly involved in arranging fake invoices for various buyers or end-users in order to pass on fake Input Tax Credit to them, and they also arranged availment of fake Input Tax Credit in the fake firms, and in return the accused-applicants had been receiving commission in cash. A perusal of the complaint/charge sheet dated 13.12.2024 would show that the applicants were associated in investigation on 16.10.2024 and their statements under Section 70 Central Goods and Services Act, 2017 were recorded, and as per these statements the accused had given the separate lists of suppliers and recipients of their above noticed two firms. The figures of availment of Input Tax Credit and passed on Input Tax Credit in respect of the two firms is Rs.24.12 crores and Rs. 23.89 crores, respectively, and this information was already furnished by the applicants while filing the tax returns. Further, the financial analysis disclosed in the complaint/ charge sheet dated 13.12.2024 shows that the statements o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... secure the appearance of the accused person at his trial by reasonable amount of bail. The object of bail is neither punitive nor preventative. Deprivation of liberty must be considered a punishment, unless it is required to ensure that an accused person will stand his trial when called upon. The courts owe more than verbal respect to the principle that punishment begins after conviction, and that every man is deemed to be innocent until duly tried and duly found guilty. 22. From the earliest times, it was appreciated that detention in custody pending completion of trial could be a cause of great hardship. From time to time, necessity demands that some unconvicted persons should be held in custody pending trial to secure their attendance at the trial but in such cases, "necessity" is the operative test. In this country, it would be quite contrary to the concept of personal liberty enshrined in the Constitution that any person should be punished in respect of any matter, upon which, he has not been convicted or that in any circumstances, he should be deprived of his liberty upon only the belief that he will tamper with the witnesses if left at liberty, save in the most extraordina ..... X X X X Extracts X X X X X X X X Extracts X X X X
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