The Chhattisgarh High Court granted bail to the person accused of wrongful availment of Input Tax Credit (ITC).
During search and investigation at the premises of M/s J.R. Traders, Proprietor of which is Shri Vipin Tanna, non-applicant found that said firm is being managed and controlled by applicant Rohan Tanna as authorized signatory. Similarly, another firm is created by applicant Rohan Tanna in the name of M/s Abhishek Marketing, 399, Golden Trade Centre, New Rajendra Nagar, Raipur in which applicant Rohan Tanna is partner of 80%, whereas applicant Abhishek Pandey is also active and working partner of 20%.
It was revealed that both applicants through fake input tax credit invoices, without actual supply of goods, facilitated recipients with fraudulent and irregular input tax credit affecting collection of Goods and Services Tax. During search it also revealed that other firms, which are recipients of benefits based on fraudulent and irregular input tax credits, are M/s Mishra Trading Company, M/s Sun Imperia, M/s Bhupen Traders, M/s Shree Ji Traders, M/s Ishant Trading, M/s Aarsh Global. Names and identities of Proprietors of aforementioned firms and their credentials have been used and further controlled by said firms by getting them registered with the GST Department.
The Single bench of Justice Parth Prateem Sahu held that applicants are arrested for commission of offences punishable under Sections 16 & 132 (1) (b) & (c) of the GST Act. Section 138 of the GST Act deals with compounding of offences. Offence registered against applicants under Section 132 (1) of the GST Act is made compoundable by the Commissioner on making payment to the Central Government or State Government either before or after institution of prosecution. In the case at hand, a case is instituted against applicants and they are arrested.
“Accordingly, both applications are allowed and it is directed that applicants shall be released on regular bail on their furnishing a personal bond in the sum of Rs.1,00,000/- with one surety in the like sum to satisfaction of trial Court concerned on the conditions that they shall appear before the trial Court concerned regularly on each & every date unless exempted from appearance; they shall not, in any manner, tamper with prosecution witnesses; If applicants are found involved in similar offence in future, it will be open for the State to apply for cancellation of bail.
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