GST Evasion: Patiala House Court grants Bail to person alleged of wrongfully claiming ITC to the tune of Rs. 25 Cr [Read Order]

Patiala House court - bail - ITC - taxscan

The Patiala House Court granted bail to the person alleged of wrongfully claiming ITC to the tune of Rs. 25 Crores.

The applicants, Naresh Mittal and Chhedi Lal Mittal submitted that both the accused persons are sole bread earner of their families and they are languishing in jail since November 19, .2020.

It was submitted that the first regular bail application was dismissed on the ground that investigation was then at a very crucial stage.

Now the investigation has been completed and the entire evidence is in custody of the department, the custody of the applicants is no longer required by the Department.

It is submitted that trial would take a long time and applicants pass the tripod test as they are not flight risk or they can tamper with the evidence or influence witnesses.

On the other hand, the application was opposed on behalf of the Department submitting that the firms formed by accused persons were never found existing at their registered addresses and the documents uploaded in the GST Portal for obtaining registration by accused persons were also fabricated. Also, it is submitted that the said firms availed fake ITC to the tune of approximately Rs.25 crores.

The court while considering the fact that investigation has been completed and they are no longer required for custodial interrogation, both the accused persons i.e. Naresh Mittal and Chhedi Lal Mittal are hereby accorded bail subject to furnishing PS/SB of Rs.5.00,000.

The court has directed that the accused persons shall join the investigation as and when directed by the investigating agency.

“The accused persons shall not tamper with the evidence or influence the witnesses which will be examined by the department during investigation,” the Court ordered.

The court further directed that accused persons shall not leave the country without the permission of the Court and deposit his passport with the 10 within seven days.

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