The Patiala House Court refused to grant bail to the person accused of fraudulently availing Input Tax Credit ( ITC ) to the tune of Rs.7 Crore.
The applicant-accused, Abhit Manohar is proprietor of M/s Siddhivinayak Venture being used by one of his close friend Deepak Mittal for clothing business who did not pay the requisite GST amount, got arrested and was later released on bail.
The applicant submitted that applicant/accused has been falsely arrested in the present case and he has been languishing in judicial custody since December 23, 2020.
It was further submitted that applicant/accused is neither a supplier/purchaser nor a registered dealer under the GST Act nor has he rendered any service nor issued any invoice. It is submitted that investigation qua the applicant-accused is already complete and his custodial interrogation is not required in the present case.
The accused submitted that his father has already expired and since then, his mother is suffering from multiple ailments. It is thus prayed that the applicant/accused may be released on bail.
On the other hand, the department vehemently opposed the bail application arguing that the applicant/accused is the proprietor of the firm M/s Sri Siddhivinayak Venture and during the course of the investigation, it was revealed that the applicant/accused knowingly participated in receipt of only paper invoices to the tune of Rs.150 crores without any movement of goods and has fraudulently availed/passed input tax credit of approximately Rs. 7 crores to Government exchequer. The Roster Judge Dharmender Rana after considering the seriousness of allegations, enormity of charge, and the fact that the investigation is at a crucial stage, refused to release the applicant/accused on bail.
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