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Rajasthan HC denies Bail to person alleged for Wrongful availment of ITC until Investigation is complete [Read Order]

Investigation - Bail - Rajasthan High Court - Taxscan

The High Court of Rajasthan has rejected the bail application of the person accused of wrongful availment of Input Tax Credit (ITC) until the investigation is complete.

The court directed that investigation be completed within a period of three months from that day and in case investigation is not completed within three months, then the petitioner therein is released on bail by the trial court by imposing appropriate terms and conditions.

The Petitioner, Rajesh Arora has filed the bail application under Section 439 Code of Criminal Procedure, 1973 seeking regular bail in F.I.R.registered at Directorate General of Goods and Services Tax Intelligence Zonal Unit, Jaipur for offenses of wrongful availment of Input Tax Credit (ITC) punishable under Sections 132  of the Central Goods and Services Tax (CGST) Act, 2017.

The petitioner contended that the maximum period of a sentence that can be awarded in the present case is five years and the petitioner is behind the bars from August 3, 2018.

On the other hand, while opposing the petitioner’s contention, the respondent Authority stated that the bail petition filed by similarly situated co-accused Sandeep Goyal was dismissed by the Court.

The single-judge bench of Justice Sabina, while adhering to the decision of the Apex Court in the case of Co-accused Sandeep Goyal has not granted bail to him and has directed that investigation be completed within a period of three months from that day and in case investigation is not completed within three months, then the petitioner therein is released on bail by the trial court by imposing appropriate terms and conditions.

“In case investigation is completed within three months from the date of the order passed by the Hon’ble Supreme Court, i.e., 17.04.2020, it would be open for the petitioner to move the trial court for bail. In case, any such application is filed by the petitioner, the same be disposed of by the trial court on merits in accordance with the law,” the court remarked.

To Read the full text of the Order CLICK HERE

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