Patiala House Court refuses to grant Bail to person accused of huge GST Evasion to the tune of Rs.45 Cr [Read Order]

Patiala House Court refuses to grant Bail to person accused of huge GST Evasion to the tune of Rs.45 Cr [Read Order]

Patiala House Court - grant bail - tax evasion - Taxscan

The Patiala House Court refused to grant bail to a person accused of huge tax evasion to the tune of Rs.45 Crores.

The applicant accused, Avijeet Saluja is the mastermind along with his wife Ms. Luptia Saluja involving a huge scam of tax evasion to the tune of Rs. 45 Crores approximate. It is submitted that during the investigation, it has come out that M/s Sun Flame Trading Pvt Ltd., M/s. Atlantic International Trading Pvt. Ltd and Ms. Blue Stare Pvt Ltd, where the applicant and his wife are Directors had taken illegally a refund of IGST accumulating in their books only on the basis of receipt of paper invoices without receiving a supply of good as the suppliers of these companies were found to be nonexistent is submitted that applicant and his wife created 05 bogus firms and availed ineligible ITC of Rs. 45 Crores approximate on the strength of fake invoices providing fabricated information E-Way Bill was availed and a refund has taken later.

Upon investigation, it was revealed that the companies did not receive goods from the supplier on whose invoices ITC has been claimed and on physical verification, none of the supplier was present in some cases and physical addresses were found non-existent.

The transporter featuring in the e-way bills stated that they have not supplied the goods in respect of which ITC has been claimed Also the claim of the applicant that he made on-line payment to his suppliers was found to be fake as in many cases either the account did not exists or in some case the accounts were in the name of unauthorized people. It is submitted that accused and his wife are well qualified and were active Directors of the companies

The instant second bail application has been moved on behalf of applicant accused, Avijeet Saluja submitting that first bail application was preferred before Ld Duty MM on the date of arrest while judicial remand of the accused was sought by the department, however bail application was rejected by the Ld Duty MM keeping in view of the urgent listing of the application before the High Court of Delhi.

The applicant has requested his bail by submitting that his medical condition is also not good as he suffered brain stroke in 2007 and underwent surgery thrice during 2007 to 2009 and he also suffered paralysis after his third surgery.

The Patiala House Court noted that not only fake invoices were created for availing fraudulent ITC but refund also claimed of the ITC accumulated on the strength of such fake invoices.

It is noteworthy that the accused remained evasive throughout during questioning as he did not supply any information about other persons or firms with whom he was dealing or having connection with his scam.

The court noted that the medical condition as pointed out during arguments does not make it a case of a medical emergency as the paralysis and the brain stroke relates to 2007-2009 as such do not pose a present threat to the life of the applicant. Also, the Jail authorities can very well cater to the medical needs of the applicant as adequate medical infrastructure or facilities are available in the prison.

Therefore, the court after considering the magnitude of the scam, the projected loss to the exchequer to the tune of Rs.45 Crores approx, and the conduct of the accused, refused to release the accused.

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