Patiala House Court cancels Bail to person accused of repeatedly indulging wrongfully passing of ITC [Read Order]

Patiala House Court - Cancels - Bail - Wrongfully - Passing - ITC - Taxscan

The Patiala House Court has cancelled the  bail to the person accused of repeatedly indulging wrongfully passing of ITC.

The DGGI filed the application seeking cancellation of regular bail granted to respondent Kabir Kumar by this Court. It has been submitted that intelligence was gathered by the department that M/s Himanshu Enterprises was indulging in issuance of fake invoices without actual supply of goods and the said Enterprise also did not discharge its GST liability and issued fake invoices to another fictitious firm namely M/s Gariox Enterprise which further issued fake invoices to other 13 firms which were found non-existent at the principle place of business. 

The searches were conducted and statement of Gaurav Gupta was recorded wherein he named respondent as owner or controller and creator of many fake firms including Paul Overseas. Statement of the accused was also recorded and thereafter, Kabir Kumar was arrested and he was granted bail.

It has submitted that one of the condition of the bail was that he would not indulge himself again in similar offence in future, however, after release, respondent continue to issue fake bills from his fake firms to the tune of Rs. 4.28 crore thereby defying the condition of the bail and also passing on ineligible ITC on commission. It is submitted that the accused is continuing with his well established network of defrauding the exchequer persistent in destroying the framework of the nation economy. The department prayed that his bail may be cancelled for the violation of the main condition of order.

The CMM, Pankaj Sharma held that  the conduct of the accused has been unsatisfactory and defiant as despite specific directions he failed to appear before Court which is also violation of the condition of bail whereby he is obligated to appear before the Court as and when directed. Rather baseless and untenable grounds are taken to avoid Court appearance which speaks volumes of his conduct.

The court has noted that two important conditions of the bail has been continuously and deliberately violated by the respondent with impunity. The very object of grant of ball has been defeated by the accused by indulging in the similar crime again and defying the Court orders. If the respondent is defiant to Court directions then it can be easily assumed that how little he would have cared of department proceedings. In the garb of bail order. accused cannot be permitted to continue with a similar offence which has the tendency to harm the nation’s economy. Accused is apparently showing indolent attitude towards the judicial process. In the considered view of this Court, the aforesaid facts provide very cogent and overwhelming circumstances for exercise of power for cancellation of bail. Accordingly, for the violation of two basic conditions of the bail order respondent’s bail is canceled. 

“He is directed to immediately surrender before the Court. In case, accused fails to surrender by tomorrow L.e. 23.12.2021, the department will take necessary steps for his arrest. Application disposed of. Copy be sent to all concerned for information and compliance,” the court added.

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