The Delhi High Court (HC) chaired by Justice Amit Sharma granted bail to the petitioner who claimed fake Input Tax Credit (ITC) under Goods and Services Tax (GST) on personal bond of Rs. 1,00,000 along with two sureties.
The Present application filed before the court under Section 439 of the Code of Criminal Procedure, 1973 (‘CrPC’) seeks grant of regular bail in case charged Section 132 of the Central Goods and Services Tax Act, 2017 (‘CGST Act’).
The allegations against the applicant/ petitioner M/s Saraswati Enterprises, put forward by the respondents was related to unauthorised and fraudulent claim of input tax credit in respect of Goods and Services Tax (‘GST’).
The Section 132 of the CGST Act, 2017, deals with punishment for offences like evasion and wrongful availing of input tax credit. The maximum punishment is 5 years imprisonment with fine.
According to section 132(5), the offences mentioned under clauses (a) or clause (b) or clause (c) or clause (d) of section 132(1) are cognizable and non-bailable.
It is submitted by the counsel of the applicant/ petitioner that the investigation is complete and further custody of the applicant is not required for any purpose. It is further submitted that the evidence brought on record by way of the aforesaid chargesheets is documentary in nature. Further, the co-accused also got bail.
Conversely, the APP for the state submitted that the order granting bail to the co-accused Pulkit is distinguishable on the ground that the email on the basis of which fake GST account was registered belonged to the present applicant.
The count observed that as per the status report, there are no prior criminal antecedents of the present applicant and no useful purpose will be served by keeping the applicant in judicial custody any further.
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