The Punjab and Haryana High Court in the case of Sanjay Dhingra vs. Director-General of Goods and Service Tax (DGGST) Intelligence has refused to grant the concession bail in the case where petitioner was alleged to create a fake invoice in order to avail the benefits under Input Tax Credit (ITC).
The petitioner was allegedly involved in the business of creating fake invoices in order to avail of the benefit of Input Tax Credit (ITC). The fake invoices consists of the name of the companies or firms which were controlled either by the petitioner or these companies or firms were in the name of the employees or any known person.
In this way, the petitioner allegedly availed the Input Tax Credit (ITC) in the name of the various non-existent companies by making a fake invoice. Further, the accused has also facilitated the irregular availment and utilized the Input Tax Credit (ITC) which has ultimately led to the wrongful and substantial loss to the government and wrongful gain to the accused. Therefore, in accordance with all the allegations, the petitioner was arrested on the charge of creating fake invoices and also the liability of Rs. 127 crore has been created against the accused. And hence the petitioner knocked on the door of the court for the grant of concession bail.
The issue raised was whether the petitioner is entitled to get bail or not?
The single bench at High Court of Punjab and Haryana comprising of Justice Vivek Puri while taking into consideration the decisions of the Supreme Court held that there are very serious charges or allegations levelled against the petitioner who has allegedly created fake invoices without the movement of goods. Therefore, keeping in mind the public good the court did not grant the concessional bail to the petitioner.
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