Patiala House Courts grants Bail in alleged evasion of GST via bogus Input Tax Credit [Read Order]

Patiala House Courts - GST - Taxscan

The Patiala House Courts have granted bail in alleged evasion of GST via bogus Input Tax Credit.

In a recent case, the bail application was filed by the applicant before the Patiala House Courts, Delhi seeking bail for the offence of evasion of tax by fraudulently passing on inadmissible ITC on the strength of the alleged amount.

The court held that the applicant has already deposited RS.2 crores under protest in order to show his bonafide. The custodial interrogation of the applicant is no more required. The applicant is hereby admitted to bail

The applicant has fraudulently availed Input Tax Credit (ITC) to the tune of Rs. 7.90 crores on the basis of input tax credit accumulated through fake invoices. The applicant is allegedly found to be involved in the evasion of tax by fraudulently passing on inadmissible ITC on the strength of the alleged amount, the accused has already deposited some amount.

The applicant submitted that the applicant has been falsely implicated. On various occasions, the applicant joined the investigation with the complainant department. The applicant was coerced to give statement however; the said statement has already been retracted by the applicant. The applicant wrongly charged U/S 132 CGST Act and the provisions therein have been wrongly invoked as there is no conclusive evidence to show that the information furnished by the suppliers for accusing the applicant of evading GST via bogus ITC is tenable, reliable and authentic. The applicant has already deposited RS.2 crores under protest in order to show his bonafide. The applicant may be admitted to bail.

The department strongly opposed the bail application and he submitted that the applicant has fraudulently availed Input Tax Credit (ITC) accumulated through fake invoices. The investigation of this case is at the initial stage and the applicant may influence the witness if released on bail at this stage and hence the bail application may be dismissed.

Judge Purushotam Pathak held that the applicant has been in custody and the custodial interrogation of the applicant is no more required. Considering the totality of facts and circumstances applicant is hereby admitted to bail on furnishing personal bond with one security in the like amount subject to condition that he shall join the investigation with the IO as and when required and that he shall not tamper with evidence or influence any witness in any manner whatsoever and that he shall appear before the court on each and every date of hearing to attend the proceedings in accordance with the terms of bail bond which would be executed by him and he shall not leave the country without prior permission of the court.

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