Issuance of GST Invoices without Supply of Goods to Buyers: Gujarat HC grants Bail to Accused [Read Order]

The Gujarat High Court granted bail to accused in the matter regarding issuance of GST invoices without supply of goods to buyers.

The counsel for the applicant submitted that submitted that the investigation has already been completed and charge-sheet has also been filed. It is submitted that the applicant is a proprietor of M/s. Remgold International duly registered under the CGST Act and is indulged in the business of trading and brokerage at Rajkot and is no way connected with the instant case and has been falsely arraigned as an accused on the allegation that the applicant in connivance with the other individually indicted accused persons had allegedly issued GST invoices without any supply of the goods to the buyers on commission basis causing loss of Rs.33 crores and odd to the government exchequer.

It was also contended that the applicant-accused is a reputed businessman and has nothing to do with the present offence. The applicant-accused himself shown willingness to appear before the authority for the purpose of recording of his statement. The applicant does not have any connection with the alleged bogus firms mentioned in the production report. It was further submitted that the applicant fully cooperated to the investigators at the time of search and seizure procedure and all the documentary as well as electronic evidences have already been recovered by the investigator and thus no further recovery or discovery is pending against the applicant-accused.

The counsel appearing for the original complainant has submitted that from the statements of the applicant and other co-accused persons, the allegations against the applicant in the complaint are fully proved. The applicant has admitted his active role in the alleged offence. Fraudulent availment and utilization of input tax credit of more than Rs.5 crore has been done by the applicant and offence alleged is cognizable and non-bailable as per Section 132 (5) of CGST Act.

It was argued that that the present applicant-accused, in connivance with the other fellow accused of the syndicate, planned a conspiracy for fraudulently availing Input Tax Credit by issuing fake invoices in the name of the non-existing firms without affecting any physical transaction and thereby committed a serious economic offence causing loss of crores of rupees to the government exchequer.

A Single Bench of Justice Divyesh A Joshi observed that “Only on the ground of seriousness of the offence, the applicant-accused cannot be deprived of his legitimate right to be released on bail pending trial, as held by the Supreme Courtin the case of Sanjay Chandra vs. Central Bureau of Investigation.”

“Hence, the present application is allowed and the applicant is ordered to be released on regular bail in connection with the FIR being DGGI/INV/CM/25/2022 registered with the Directorate General of GST Intelligence, Rajkot, on executing a personal bond of Rs.15,000/- ( Rupees Fifteen Thousand only ) with one surety of the like amount to the satisfaction of the trial Court and subject to the conditions” the Court concluded.

To Read the full text of the Order CLICK HERE

Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates