The Rajasthan High Court has granted bail to accused of creating the fake firms, claiming Input Tax Credit (ITC) worth Rs.16.99 crores.
The petitioner, Dananjay Singh has been wrongly implicated in this case. He has been behind bars since 24.10.2021.
As per complaint, the complainant does not disclose the complete investigation against the petitioner. Learned counsel for the petitioner further submits that as per GST Act, incomplete charge- sheet cannot be filed against the petitioner. After that there is no occasion that the complainant can file a full charge-sheet. So, the complainant also claimed the bail on the ground under Section 167(2) Cr. P. C. as a default bail. As per contention of the complainant that the petitioner had supplied packaging material to the seven firms which are fake.
The petitioner had paid GST as per the Act. So, there is no breach of Section 132 of the GST. Learned counsel for the petitioner also submits that show cause notice was not given to the petitioner. Learned counsel for the petitioner also submits that as per the GST Act, appeal can be filed by depositing 10 percent of the assessed amount. Learned counsel for the petitioner also submits that the persons of the complainant had mis-behavied with Rohit Kumar and he had filed a writ before the high court for ill-treatment. In this case, no valid sanction has been given against the petitioner for filing of the complaint. Learned counsel for the petitioner also submits that the complainant had not accused seven fake firms. Learned counsel for the petitioner further submits that as per the GST Act, these firms are registered. So, it cannot be said that these firms are fake.
The respondent has opposed the arguments advanced by learned counsel for the petitioner and submitted that the petitioner had created the fake seven firms and claimed input tax credit of Rs.16,99,89,923. He had issued the invoices of Rs. 94,43,88,462/-.
The single bench of Justice Narendra Singh Dhaddha held that the bail application under Section 439 Cr.P.C. is allowed and it is ordered that the accused-petitioner Dananjay Singh shall be enlarged on bail provided he furnishes a personal bond in the sum of Rs.50,000/- with two sureties of Rs.25,000/- each to the satisfaction of the learned trial Judge for his appearance before the court concerned on all the dates of hearing as and when called upon to do so.
Dananjay Singh S/o Shri Hari Sharan Singh vs Union Of India, Through Special Pp
CITATION: 2022 TAXSCAN (HC) 191
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