The Gujarat High Court, while considering a bail application by an accused involving a GST scam of Rs. 37.95 crore, has granted bail subject to deposition of Rs. 10 lakhs to the Government in six equal installments.
The applicant, Mr. Bharat Gordhandas Patel was in custody, in connection with a scam unearthed in pursuance to the search proceedings conducted at the business place of M/s JK Traders, who is in the scrap business. During the search proceedings, it was revealed that, the administrator of M/s JK Traders Mr. A.A.Shah has wrongly claimed and availed input tax credit by showing fake inward transactions and have created fictitous firms/companies, whereby, had claimed illicit ITC of Rs.36.05 crore and passed on three other firms to the tune of Rs.36.35 crore and have made cash transactions without invoices, which resulted into monetary loss to the Government exchequer to the tune of Rs.37.95 crore.
The petitioner contended that the principal accused Mr. A.A.Shah has been granted bail by this court subject to deposition of Rs. 2 crore. Thus, therefore, considering the role attributed to the applicant herein, without prejudice to the rights and contentions, is willing to deposit Rs.10 lacs within six months from his release. It was also submitted that, the applicant is in custody since 23.03.2022 and now his further custody is not necessary as complaint has already been filed before the Court concerned.
After considering the above contentions, Justice Ilesh J. Vora observed that the applicant is working for and on behalf of the principal accused Mr. A. A. Shah and was charging commission amount.
“In such circumstances, when principal accused Mr. A.A.Shah granted bail by this court, subject to deposition of Rs.2 crore, the present application also deserves consideration. The department failed to point out the facts that the further custody of the applicant is necessary. The entire case is based on documentary evidence and same are in the custody of the department. After filing the complaint before the learned Metropolitan Magistrate Court, there is no chances to conclude the trial in a reasonable time,” the Court said.
Referring to a ruling in the case of P. Chidambaram Vs. Directorate of Enforcement, the Court released the applicant on bail with acondition that “the applicant shall deposit Rs.10 lacs before the Office of the respondent no. 2 i.e Assistant Commissioner of State Tax, Unit-5, 11th Floor, B-Block, Multi-storied Building, Lal Darwaja, Ahmedabad within a period of 6 months in equal six installments. The department is directed to accept the amount. It is clarified that, if the applicant fails to deposit the amount as aforesaid or missed any installment, the bail granted shall stands automatically cancelled. The applicant is directed to file undertaking to this effect before the court concerned and this court within 15 days from his release.”
Subscribe Taxscan Premium to view the JudgmentSupport our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates
