GST Evasion: Patiala House Court refuses to grant Bail to person accused of wrongfully availing ITC to tune of Rs.12.82 cr [Read Order]

GST Evasion - Patiala House Court - grant Bail - wrongfully availing ITC - Taxscan

The Patiala House Court refused to grant the bail to a person accused of wrongfully availing the ITC to the tune of Rs.12.82 Crores.

On behalf of the accused, Sanyam Mittal surrendered cum third regular bail application has been filed that accused has been falsely involved in the present case by the department.

The department submitted that accused availed fraudulent ITC of Rs. 12,82,05,579 from various bogus firms and he accepted his fraud under section 70 of CGST Act where he confirmed that he purchased goodsless invoices from Tarun Verma only. It is submitted that summons were issued to the applicant to provide certain documents but he did not submit the record to the department and investigation of the beneficiaries.

It is submitted to the department neither issued any show cause notice nor filed any complaint before the Court. It is submitted that the mastermind of this fiasco is Tarun Verma who is already canted regular bail. Also, Manoj Gupta who is the beneficiary is also granted regular bail. The applicant is innocent and he has remitted the entire invoices values to his vendors through a proper banking channel.

The Chief Metropolitan Magistrate, Pankaj Sharma noted that the department could not interrogate him post his release on interim bail due to Covid-19. The fact that the accused has disobeyed the summons earlier and provided irrelevant material to the department indicates that he would jettison the ongoing investigation.

Therefore, the court in the interest of fair investigation,refused to grant bail to the accused at this stage.

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