While dismissing a bail application to a GST offender considering the fact that the investigation is in a crucial stage and granting bail would ultimately result in tampering evidence by the petitioner/accused.
The petitioner is the Proprietor of Tvl. Golden Traders engaged in bill trading activities. The investigation has found that the petitioner was involved in passing on Input Tax credit to various companies fraudulently and on the date of filing the complaint, the loss of revenue to the Government is assessed as Rs.4,78,47,505/-. It was also stated that without any stocks worth mentioning in a place business premises having 10*10 (100sq.ft), the petitioner created a document as if he is transacting several crores of rupees and created bills for the purpose of availing input tax credit.
The petitioner was arrested for the above offenses and has approached the High Court requesting bail contending that the allegation against him is the evasion of input tax credit to a tune of Rs.3.39 crores which is a bailable offence as per Section 132 of the TNGST Act 2017.
The Revenue pleaded that the investigation was not yet completed to identify the other fake floated by the petitioner. Therefore, the investigation has entered a very crucial stage, if the petitioner is granted bail, it will cause hindrance to the investigation and he may even tamper with the evidence.
Justice G Jayachandran held that the remand application is on 10.01.2022 which reflects the loss of revenue under three different heads with exceeds more than Rs.5 crores. Therefore, the plea of the petitioner that offence committed by him is only a bailable offence and the tax evasion is less than Rs.5 crores is contrary to the records placed by the prosecution.
Dismissing the petition, the Court concluded that “As far as, the custodial interrogation viz., grant of bail it is necessary to take into account the apprehension of the respondent that the petitioner who has floated fictitious companies and create records, if let out on bail will tamper the evidence. Since the investigation has entered the crucial stage, the release of the petitioner at this stage will lead to tampering of evidence. The objections of the respondent is well found and therefore, this Criminal Original Petition is dismissed.”
Thiru.Yasar Arabath vs Deputy Commissioner (State Taxes)
CITATION: 2022 TAXSCAN (HC) 212
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