The Sessions Court at Vapi granted bail to a person accused of wrongfully availing Input Tax Credit (ITC) from non-existent firms.
The applicant-accused, Rameshchandra Tulsidas was allegedly involved in some more availment of fraudulent ITC from non-existent firms and further utilization of fraudulently accumulated ITC. The existing evidence shows availability and utilization of fraudulent ITC which is more likely to increase once further investigation is carried out and all factors are unearthed. Further, in the statements recorded under Section 70 of the CGST Act, 2017, Shri Rameshchandra Tulsidas Agarwal also admitted that: The ITC amounting to Rs. 5,97,75,230/- was fraudulently passed by M/s. One Ten Steels, M/s. Prime Metals, M/s. Magnus Metals, M/s. Crystal Metals, M/s. R J Traders, M/s. Decent Steels & M/s. Global Traders and utilized by his firm M/s. Manish Scrap Traders for discharging their output tax liability”.
The 3rd Additional Sessions Judge, Dharmender Singh observed that the offence is punishable up to 5 years, compoundable and triable by the Court of Magistrate. Admittedly, the complaint against the applicant-accused is yet to be filed. Further, the allegations against the applicant-accused are yet to be established during the trial and trial will take a long time. Thus, seeing the quantum of sentence an accused is likely to face, gravity of the offence, severity of punishment, the liberty of an individual being involved, the period of custody of the accused, this court is of the considered opinion that the applicant / accused is entitled for concession of regular bail in this case.
The court ordered the applicant to be released on bail in connection with F No. XIV/516-28/2020 for the offence punishable under section 132(1)(B) & C of the CGST Act, 2017 on furnishing personal bond of Rs.15,000/- with one surety like amount to the satisfaction of Ld. Trial Court/ Illaqua Magistrate/concern court.
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