The Gujarat High Court has granted Bail to two dealers who wrongly availed input tax credit (ITC) and also passed it on to the concerned buyer which is an offence punishable under Section 132(1)(b) of the Central Goods & Service Tax (CGST) Act.
The Court considered the submissions of the appellants, Akshay Dinesh Patel and Darshan Dinesh Patel that they were in jail since 23.12.2019 and that for the alleged transaction, it was always open for the respondent department to take departmental action for recovery of penalty against the applicant. The applicants also expressed that they were ready and willing to deposit Rs.25 lakh before the respondent within a period of 8 weeks from the date of his actual release. Furthermore, It was also submitted that the applicant will cooperate with the respondent department during the course of further investigation.
Justice Vipul M. Pancholi, while granting bail held, “ The applicant is ordered to be released on regular bail input tax credit on executing a personal bond of Rs.10,000/ (Rupees Ten Thousand only) with one surety of the like amount to the satisfaction of the trial Court and subject to the conditions.“
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