GST: Patiala House Court grants bail to person accused of wrongfully availing ITC to the tune of 13.90 Cr [Read Order]

Patiala House Court -bail - wrongfully availing - ITC - Taxscan

The Patiala House Court granted the bail to the person accused of wrongfully availing Input Tax Credit (ITC) to the tune of 13.90 Crores.

The accused has utilized and availed ineligible input tax credit to the tune of Rs. 13.90 crore. On the strength of goods less invoices received by the said company from various bogus firms on a commission basis.

The search was conducted at their office, factory premises and additional places and the additional place of business as shown in the registration was found to be closed.

The accused admitted to having availed and utilized inadmissible ITC amounting to Rs. 13.90 crore. It is submitted that investigation are still under way and enquiries from various other stakeholders and recovery of documents is still pending.

The department submitted that the accused is the main beneficiary and played a major role in the entire fraud of availing fake ITC.

The accused filed the bail application stating that he is 66 years of age and he joined the investigation on first summon itself and did not abscond or flee away. Also the accused is suffering from several diseases and for a muscular hole in the retina he requires surgical treatment.

The accused submitted that his medical conditions make him more susceptible to COVID-19 virus. It is submitted that not even a single rupee has been received by the accused in his personal account and there is no documentary proof that the applicant received any monetary benefit from the alleged offence.

On the other hand, the department urged that the medical condition so described by the accused cannot be termed as alarming and adequate medical infrastructure is available inside the jail.

The Chief Metropolitan Magistrate, Dr. Pankaj Sharma after considering the overall facts and circumstances which includes his age, antecedents, conduct the accused is entitled for bail subject to furnishing PB/SB in the sum of Rs. 5 lakhs with one surety in the like amount subject to various conditions.

Firstly, the accused shall join the investigation as and when directed by the investigating agency.

Secondly, the accused shall not tamper with the evidence or influence the witnesses which will be examined by the department during investigation.

Thirdly, accused shall not leave the country without the permission of the Court and deposit his passport with the 10 within seven days. 4. That accused shall not indulge in similar offence in future.

Lastly, accused shall appear before the Court on each and every date of hearing.

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