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Creating Fake GST Invoices to avail ITC is illegal: Patiala House Court dismisses Bail Application [Read Order]

Bail Application - GST - Fake Invoices - Patiala House Court - Taxxscan

The Patiala House Court, New Delhi has dismissed the Application of Bail, wherein the applicant was allegedly involved in the creation of fake Goods and Service Tax (GST) invoices to avail Input Tax Credit (ITC), which is illegal in the eye of law.

In the case of Shri. Naveen Mutreja vs. Central Goods and Service Tax (CGST), the applicant filed an anticipatory bail on the alleged offence of creating the fake Goods and Service Tax (GST) invoices to avail Input Tax Credit (ITC) also stated that the statement which was taken from him during the investigation was under coercion, he had no option but to accept the offence which he has not committed because of the force.

The applicant namely Naveen Mutreja was found in the procession of fake Goods and Service Tax (GST) invoices of the company. In this regard, an enquiry was conducted and the summons under Section 70 of the Central Goods and Service Tax (CGST) Act, 2017 was issued to the applicant. However, the applicant did not appear before the concerned department of income tax and as a consequence, a complaint was registered against him.

The applicant contended that the summons served by the department did not consist of Document Identification Number (DIN) and the applicant also contended that the statement, which was taken from him during the investigation, was under coercion.

The issue raised was how could the applicant be coerced when he has appeared under the protection of the court?

The Patiala House Court, New Delhi comprised of Praveen Singh, Judge dismissed the application of anticipatory bail on the grounds that the applicant was given time for investigation, he was at the same time given protection by the court, so it is impossible to believe that a person who is given a protection can be threatened orally or made to be given inculpatory statement.

To Read the full text of the Order CLICK HERE
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