GST Evasion: Chennai Court refuses to grant Bail to person accused of wrongful availment of ITC Exceeding Rs.5 Cr [Read Order]

The Chennai Court has refused to grant bail to the person accused of wrongful availment of ITC Exceeding Rs.5  Crores.

The petitioner/accused, Yasar Arabat was arrested by the respondent and remanded to judicial custody on 10.01.2022 for the alleged offence under section 132 (1) (ii) of the CGST Act, 2017. He is innocent of the said commission of the offence. He undertakes to cooperate with the respondent in the investigation. He assures that he will not tamper with any of the witnesses. He undertakes to appear regularly whenever and wherever he is ordered to do so by this Court. He seeks to enlarge him on bail.

The petitioner/accused is engaged in bill trading activity and passing on Input Tax Credit to its beneficiaries. He has himself taken ITC in GSTR-3B return without actual receipt of goods and also issued fake invoices without supply of goods and this has resulted in loss of government revenue to the tune of Rs. 5.16,36,620/-.

The court held that the evidentiary value of the statement has to be dealt with during the course of trial. Even otherwise, there is prima facie complicity of the accused with the crime. Counsel for the petitioner would contend that the beneficiaries and those who evaded tax were not implicated. The medical records of the petitioner/ accused showing various illnesses have been produced. Here it is to be emphasised that non implication of other accused and his illness would hardly be of any help to the petitioner.

“Here it is to be emphasised that non implication of other accused and his illness would hardly be of any help to the accused. No infirmities as alleged in the procedure of arrest. The contention of the learned counsel for the petitioner/accused that the State authorities have no right to add the CGST tax evasion is quite untenable. The investigation is still in the nascent stage. Other persons involved in the racket is yet to be arrested. Prima facic complicity of the petitioner/accused in the crime is established. Release of the accused at this stage would hamper the investigation. Hence this Court is not inclined to allow the present petition,” the court said.

To Read the full text of the Order CLICK HERE

Support our journalism by subscribing to Taxscan AdFree. We welcome your comments at info@taxscan.in