GST: Gujarat HC grants Bail to Accused allegedly involved in Evasion of Input Tax Credit [Read Order]

GST - Gujarat HC - Bail - Accused - Input Tax Credit - taxscan

The Gujarat High Court last week granted bail to an accused for allegedly involved in the offence of evading input tax credit under the GST regime.

The GDST department filed a criminal complaint against the accused-applicant alleging that M/s.Heugo Metal has evaded Input Tax Credit of Rs.4,51,05,130/-. Accordingly, charges under Section 132 (1) (b) (c) (f)(k) (l) of the Gujarat Goods and Services Tax Act, 2017 and the Central Goods and Services Tax Act, 2017 read with Sections 463 and 120(B) of the Indian Penal Code, 1860, was imposed. The applicant approached the High Court requesting bail.

Justice A. S. Supehia observed that the total tax evasion of the applicant’s Company Heugo Metal is shown as Rs.4,51,05,130/- which is less than 5 crores. It is further revealed that the tax liability of other company being Dattatrey Corporation, concerning the accused No.3, is also added and the total tax evasion of both the companies, is shown as Rs.7,55,76,378/-., i.e. above 5 crores. Both the companies are a seperate and distinct identity having different GST numbers.

Granting bail, the Court observed that “the residential premises of the applicant was raided in the year 2019 by now more than three years have been passed. Vide orders passed by the Division Bench of this Court, the action of cancellation of the registration of the firm M/s.Heugo Metal was also allowed. The attachment orders have also lost its validity. Even, if the tax evasion is taken more than 5 crores, the maximum punishment which can be imposed is five years. It is not disputed by the department that if the tax evasion of the applicant is less than Rs.5 crores, then it will be a bailable offence as per the provisions of Section 132(1)(i) read with Sections 132(4) and 132(5) of the Gujarat GST Act and the Central GST Act, 2017. Considering the aforesaid observations, the applicant has carved out his case for grant of bail under the provision of section 438 of the Cr.P.C.”

Mr Chetan K Pandya appeared for the applicant.

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