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GST Evasion: Delhi Court refuses to grant Bail to alleged Kingpin of operating various fake and non-existent firms [Read Order]

Delhi Court - Delhi High Court - bail - Kingpin - non existent firms - fake firms - Taxscan

The Delhi Court refused to grant bail to the alleged Kingpin of operating various fake and non-existent firms.

The complainant department is investigating a case of issuing invoices without the supply of accompanying goods for the purpose of duty evasion.

During the course of investigation, it was revealed that the accused applicant, Amit Jain is the mastermind, who is operating various fake and non-existent firms.

It is submitted that from the statement of one Manish Jain and voluntary statement of accused Amit Jain recorded under section 70 and Section 174 of CGST Act, it is evident that applicant accused Amit Kumar Jain may not be owning any firm but he provided goods less invoices of fake non-existing firms to the beneficiary firms on a commission basis, so that they can avail tax input credits on the basis of fake and forged invoices.

It is submitted that in his statement recorded, the applicant accused has voluntarily admitted his liability, and the applicant accused is involved in the commission of an offense under section 132 (1)(b) and ( c) of Central Goods and Services Tax, 2017(CGST Act).

It is forcefully submitted that the allegations against the accused are serious in nature and he does not deserve to be released on bail as he is likely to influence the proprietors of the firms who have availed the tax input credits.

The applicant-accused filed the application on behalf of for grant of bail. It was submitted that the applicant-accused has been in judicial custody since August 26, 2020.

The Additional Sessions Judge, Dharmender Rana held that the applicant accused was involved in the generation of goods less fake invoices for the purpose of duty evasion.

The court noted that no non-bailable offence is attracted in this case as admittedly offence under section 132(1)(b) of CGST Act is attracted in the present case, which admittedly is nonbailable in nature.

The court while considering the seriousness of allegations and the crucial stage of investigation refused to grant bail to the applicant.

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