The Bombay High Court has observed that, GST Officials can keep accused in Custody to prevent Tampering of Evidence.
While rejecting the Anticipatory Bail, the Court said that the assessment is not a prerequisite for arrest under Goods and Service Tax (GST).
The applicants, Mr. Ashok Kumar and Mrs. Sheelam is husband and wife, at the same time they are partners at M/s. Sheela Sales Corporation. The applicants apprehending the arrest on accusation of having committed a non-bailable offence in terms of Section 132(1)(b) and (c) read with Section 132(5) of the Central Goods and Services Tax Act, 2017.
The applicants seek directions under Section 438 of the Criminal Procedure Code, that in the event of their arrest they shall be released on bail.
It appears, Form GSTR-3B, a summary return of inward and outward supplies, filed by the applicants’ firm revealed that the said firm had availed, Input Tax Credit (ITC) of Rs.53.50 crores during the period July 2017 to September 2019 on invoices valued at Rs.352.92 crores.
The investigation revealed that the applicant’s firm after availing the ITC of Rs.53.50 crores without any actual receipt of goods has also passed on the said ITC of Rs.53.50 crores to six firms, out of which five firms.
Therefore, the main allegation is that applicants are guilty of circular trading by claiming Input Tax Credit on the materials never purchased and passing on such Input Tax Credit to companies to whom they never sold any goods.
The single-judge bench of Justice Sandeep K. Shinde rejected the application seeking pre-arrest bail.
The bench granted Pre-arrest bail of applicant, Mrs. Sheelam is granted, subject to conditions that in the event of her arrest, she shall be released on bail on furnishing bond in the sum of Rs.50,000/- with one or more sureties in the like amount.
The bench further imposed the condition that the applicant, Mrs. Sheelam shall respond to the notices/summons issued by respondent no.1 by attending to the office; shall attend concerned police station as and when called and co-operate in the investigation; shall not tamper with the evidence or attempt to influence or contact the complainant, witnesses or any person concerned with the case.
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