The Gujarat High Court granted the bail to the person accused of wrongfully availing Input Tax Credit (ITC).
The advocate, Mr. A.A. Zabuawala appearing for the applicant submitted that the main allegation against the applicant is of wrongfully availing tax exemption by mis-applying and mis-interpreting the exemption notifications issued by the Department by actually using the brand name of the company – M/s. Mishkat Agro Industries Pvt. Ltd., of which the applicant is the Managing Director, on the products and thereby, making them liable to GST.
It is also alleged against the applicant that he has willfully suppressed facts so as to avail the benefit of exemption of zero rate / exempt supplies and has, thereby, evaded huge amount of GST by wrongfully invoking the benefit of Notification No. 2/2017, which could not have been availed of in view of Notification No.1/2017-CT dated June 28, 2017, as amended by Notification No.27/2017-CT dated September 22, 2017.
The counsel Mr. Ankit Shah appearing for the respondent Department, submitted that the applicant had registered his trademark, which came out during the inspection at the Trademark Registry and since it was found to be a deliberate act of evasion of tax, the applicant was arrested. It was, therefore, prayed that no discretion may be exercised in favour of the applicant.
The single judge bench of Justice Gita Gopi allowed the bail application and imposed various conditions.
Firstly, not take undue advantage of liberty or misuse liberty.
Secondly, not act in a manner injurious to the interest of the prosecution.
Thirdly, surrender the passport, if any, to the lower court within a week.
Fourthly, not leave India without prior permission of the concerned trial court.
Lastly, furnish the present address of residence to the Investigating Officer and also to the Court at the time of execution of the bond and shall not change the residence without prior permission of the concerned trial court.
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