The Delhi High Court granted the bail to the person who has been allegedly involved in the Offence of Creating Fake Firms and Claiming Fraudulent Input Tax Credit (ITC).
The petitioner, Mukul Mittal sought regular bail pursuant to the arrest for an offense punishable under Section 132 (1)(i) of the Central Goods and Services Tax Act, 2017.
Mr. Ramesh Gupta, counsel for the petitioner, the anticipatory bail application was filed before the Sessions Judge where a statement was made that investigation from the petitioner is underway. Thereafter the petitioner appeared repeatedly for joining the investigation.
The petitioner was arrested on 9th December, 2020 and no information in this regard was given to the Court where the anticipatory bail petition of the petitioner was still pending.
Mr. Gupta contended that after the petitioner was arrested no custodial investigation was carried out; as the petitioner was sent to the judicial custody on the same day and not even once the petitioner was made to join investigation in judicial custody by seeking permission from the Court concerned.
All these firms were registered under the GST Act and have due registration certificates and thus cannot be termed as fake firms, Mr. Gupta added.
A status report and a further detailed status report has been filed by the respondent. The allegations against the petitioner and his brother Ankur Mittal are that they were providing fake invoices through various firms, floated/ managed either directly by them or by putting convenient people to manage their affairs, without any corresponding supply of goods and services. According to the respondent around 400 such fake firms were created by the petitioner and his brother Ankur Mittal and invoices issued.
The single Judge bench of Justice Mukta Gupta noted that the respondent authority does not propose to file a complaint within 60 days and after 4 days the petitioner would, in any case, be entitled to the default bail as a matter of right.
Therefore, the court directed that the petitioner is directed to be released on bail on his furnishing a personal bond in the sum of Rs.1 lakh with one surety bond of the like amount subject to the satisfaction of the CMM/Duty Magistrate concerned.
The court imposed the condition that the petitioner will not leave the country without the prior permission of the Court concerned and in case of change of mobile number and the residential address the petitioner will intimate the same to the Court concerned by way of an affidavit.
Senior Advocate Ramesh Gupta along with Advocates Bhuvnesh Satija, Vibhooti Malhotra, Udit Sharma and Bharat Sharma appeared for the petitioner.
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