The Delhi High Court granted anticipatory bail to accused in the matter relating to Rs 195 crores GST fraud.
During the course of investigation, it was found that M/s Radiant Traders, the manufacturers of smoking mixtures, had supplied the smoking mixture to M/s Harsha International. Upon search, it was found that no business activity was being conducted from the registered premises of M/s Radiant Traders and no goods or plant or machinery was found at their premises.
Subsequently, statement of the proprietor of M/s Radiant Traders, Manish Goyal, was recorded under Section 70 of the Central Goods and Services Tax Act, 2017 (CGST Act), wherein he stated that no smoking mixtures have been supplied by his firm to M/s Harsha International. The co-accused Manish Goyal preferred a bail application before the ASJ, Patiala House Courts, New Delhi, which was allowed vide order dated 21st December, 2022 and he was released on regular bail.
The counsel for DGGI submitted the smoking mixtures seized at Mundra port were tested by CRCL, Kandla, wherein it has been established that the smoking mixture is a spurious product and not fit for human consumption. Analysis of the bank accounts of M/s Harsha International reveals that M/s Harsha International had obtained GST refund of Rs.198 crores, out of which, Rs.195 crores was transferred to M/s Radiant Traders. Jitender Kumar has violated the conditions of bail as prescribed in the order dated 2nd February, 2023 and therefore, his anticipatory bail should be cancelled.
The counsel appearing for Jitender Kumar contended that Jitender Kumar has reversed the Input Tax Credit of Rs.18,19,63,214/- taken by him, which has been recorded in the order dated 24th April, 2023, passed by the ASJ and that Jitender Kumar has moved the Supreme Court and the Supreme Court vide order 14th December, 2023 has directed that no coercive action shall be taken against him. None of the bail conditions has been violated by Jitender Kumar and all the submissions made by the DGGI were considered by the ASJ in the order dated 24th April, 2023.
A Single Bench of Justice Amit Bansal observed that “From the material on record, it appears that Jitender Kumar was not the main player involved in the GST fraud and was acting on instructions from the main accused Chirag Goel and Chaman Goel. It is the case of the DGGI itself that out of the receipt of GST refund of Rs.198 crores by M/s Harsha International, Rs.195 crores were transferred to M/s Radiant Traders. Even otherwise, Jitender Kumar has clean antecedents and has been co-operating in investigation and has given his statement under Section 70 of the CGST Act. Therefore, I am inclined to sustain the grant of anticipatory bail to Jitender Kumar.”
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