The Punjab and Haryana High Court recently directed the release of the petitioner in a Goods and Services Tax (GST) false Input Tax Credit (ITC) by generation of false invoices.
The petitioner managed three firms, two in the name of M/s Shree Shyam Traders and one in
the name of M/s Stasya Enterprises. Through these firms, the petitioner availed input tax credit by fabricating invoices resulting in the generation of bills worth Rs.367 crores and evasion from payment of Goods and Services Tax (for short, GST) to the tune of Rs.26 crores, as per the allegations of the prosecution.
Bipan Ghai with Nikhil Ghai, P.S.Bindra, and Sheffaly Goyal, counsels appearing for the petitioner submitted that the petitioner has been falsely implicated in this case; he is in custody since 21.09.2021.
It was further submitted that, the maximum sentence which can be awarded to him is 05 years,
investigation in the case is complete and therefore the petitioner is not in a position to influence the same.
The counsel further contended that, even the charges have not yet been framed against the petitioner and that 37 prosecution witnesses still remain to be examined at the pre-charge stage and therefore, if at all the petitioner is put to trial, the same will take a long time to conclude.
The Single Bench of Justice Deepak Sibal observed, “In view of the above, the present case is considered to be a fit one in which the petitioner be directed to be released on regular bail.”
The Punjab and Haryana High Court said, “Resultantly, subject to the satisfaction of the CJM/Duty Magistrate, Gurugram, which shall include the condition of the deposit of the petitioner’s valid passport, if any, the petitioner is directed to be released on bail.”
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