The Bhavnagar Court granted the bail to a person accused of Wrongfully claiming Input Tax Credit (ITC) worth Rs. 6.04 Cores.
The applicants, Rajendra Mansinghai Rathod claimed to purchase the material work of Rs.33.56 crores having claimed of Input Credit of Rs.6.04 crores, which in fact, has not purchased but fake bills have been obtained without supply and receipt of the goods so as to wrongfully claimed input tax credit. The purchaser have received the goods and after the goods have rather submitted that received, the purchaser is required to make the payment of value of the goods along with the tax and thereafter, the purchaser has to verify the supply in the electronic credit ledger maintained by the supplier, which is being reflected in the applicant’s company’s electronic credit ledger and thus, the supplier and purchaser have to file necessary returns and prescribed and, therefore, the supplier and purchaser have to file returns in the Form of GSTR-1 and GSTR-3B.
The Additional Sessions Judge, Harshvadhan Narsinhbhai Vakil ruled that the whole case is based on the documentary evidence and the Investigating Agency has already seized the related documents referred to hereinabove. The present application is permanent resident of Bhavnagar and has deep roots in the Society and therefore, the chances of fleeing away from justice is remote. The applicant has been in judicial custody since 27.10.2021. The offence is triable by Magistrate Court. Denial of bail to the applicant, would amount to pre-trial conviction. It is not that the applicant would flee from the trial. The apprehension of repetition of offence can be taken care of by some stringent conditions. There is no justifiable ground to keep the present applicant in the judicial custody till the completion of the trial.
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