GST Evasion: Bombay HC refuses Anticipatory Bail to person accused of Availing ITC on the basis of Fraudulent Invoices [Read Order]

The Bombay High Court  refused the Anticipatory Bail to the person accused of Availing Input Tax Credit (ITC) on the basis of Fraudulent Invoices.

Mr. Desai, Counsel for the applicant, Premprakash Laxminarayan Bansal has sought the anticipatory bail on the grounds that, applicant had never entered into transaction with the complainant, nor applicant availed Input Tax Credit. Mr. Desai, submitted that the applicant has raised a grievance with the GST Officer thereby bringing to his notice, the fraudulent invoices were raised by the complainant. Mr. Desai invited my attention to a Certificate issued by M/s. Rahul Pramod & Co. Chartered Accountants, to submit that, M/s. Bansal Traders has not availed the credit of CGST and SGST in GSTR-9 of Financial Year 2019-20 filed on 5th February, 2021 from the available credits in GSTR-2A returns.

Mr. Desai, submitted that, neither the delivery challans nor the invoices were ever acknowledged or received by the applicant and a false case has been filed against him. Mr. Desai, further submitted that, custodial interrogation of the applicant is not required since the prosecution is largely relying on the documentary evidence. It is submitted that, applicant is a permanent resident of Mumbai and his presence for investigation and trial can be secured by imposing appropriate conditions.

However, Mr. Dedhia, counsel on behalf of the respondent submitted that the response of the Assistant Commissioner, CGST in clear terms says, that M/s. Bansal Traders has availed the ITC against Invoices No.106 and 107. Besides, the statements of the Manager of the Warehouse, owner of the trucks and the statements of drivers, prima-facie, show that goods were delivered at the request of M/s. Bansal Traders to and at the godown premises of Sarfaraz.

The Single Judge Bench of Justice Sandeep K.Shinde while refusing the anticipatory bail said that there was reason to believe that goods were supplied by the complainant to the applicant.

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