The Rajasthan High court granted bail to a person alleged of wrongfully availing Input Tax Credit (ITC).
The petitioner, Ravindra Vijay has applied for bail on the grounds that once the DGGI was already seized of the investigation, no investigation could have been carried out by the CGST and it did not have jurisdiction to step-in in the midst of the investigation by the DGGI and effect their arrest. They submitted that only to harass and victimize the petitioners by involving in two cases instead of one, the investigation was bifurcated.
Mr. G.S. Bapna, the counsel for the petitioner submitted that the complaint against them has already been filed, they are not required for further investigation, are in custody since 26.03.2021 and 27.03.2021 respectively, have no criminal antecedents except the present complaint filed by the CGST and another complaint filed by the DGGI; both involving part of the same transaction and prayed for their release on bail.
Mr. Siddharth Ranka, counsel appearing for the respondent submitted that there are grave allegations against the petitioners of wrongfully availing ITC not only to the tune of Rs.5.27 crores qua the firms namely M/s. Imran Impex, Ajmer, M/s. Shri Ram Ispat, Jaipur, M/s. Indra Enterprises, Jaipur, M/s. Dak Rolls Pvt. Ltd. and M/s. Shakumbhari Steels, Jaipur which exists on papers only; but, of the ITC to the tune of Rs.25.27 crores also qua M/s. SKE for which a separate complaint has been filed by the office of the DGGI. Learned counsel submitted that the investigation is still going on and in view of the gravity of the offense committed by the petitioners, they do not deserve indulgence of bail.
The Single Judge Bench of Justice Mahendra Kumar Goyal allowed the bail applications on the condition that the petitioner shall furnish a personal bond in the sum of Rs.1,00,000/- together with two sureties in the sum of Rs.50,000/- each to the satisfaction of the trial court with the stipulation that they shall comply with all the conditions laid down under Section 437(3) Cr.P.C.
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