The Additional Sessions Judge, Gurugram has denied bail application of an accused of GST scam allegedly involved in availing and passing on fraudulent ITC to non-existing companies.
As per the prosecution, the accused, Pawan Kumar has committed the offence of availing fraudulent ITC to defraud government exchequer. It was submitted that the conduct of applicant/accused clearly establishes on record that applicant/accused used to manage M/s Laxmi Trading Co. alongwith his nephew Gopal Sharma and was also proprietor of M/s Pawan Traders. It is submitted that applicant/accused is also proprietor /controller of entities like M/s Pawan Traders, M/s Jagannath, M/s Kajuwala, M/s Jatin Sharma, M/s Sai Overseas, etc which are also suspected to be involved in availing and passing on fraudulent ITC to non-existing companies.
Allegedly, M/s Laxmi Trading Company, prima facie, has availed fraudulent ITC for a sum of Rs.22.62 crores and passed on fraudulent ITC of Rs.26.31 crores. During verification of inward suppliers, it has been revealed that M/s Laxmi Trading has availed fraudulent ITC from non-existent or non-traceable firms to the tune of more than Rs.10 crores. It is further submitted that applicant/accused is involved in more than one financial frauds and his past antecedents are tainted.
The Court, after hearing arguments from both the sides, rejected the bail application and held “GST has been hailed as a major tax reform in the post liberalisation era to check the cascading effects of taxation. However, unfortunately, some of the mischievous brains are busy removing the nuts and bolts from the vehicle of tax reforms to hinder the forward course of .to r../ri owth. The Courts of this country cannot afford to take a lenient view.”
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