A Single Bench of the Gujarat High Court granted regular bail to the accused in 67.72 crores GST fraud.
The Applicant has filed the Application under Section 439 of the Code of Criminal Procedure for enlarging the Applicant on Regular Bail for the offences punishable under Sections 132(1)(b), 132(1) (c) and 132(1)(1) of the Central Goods and Service Tax Act, 2017.
The Advocate for the Applicant, N.D.Nanavaty, has submitted that the Applicant is involved in the legitimate business of trading in copper scrap, brass scrap, etc. and is not involved in any kind of illegitimate activities. The Applicant has done purchases and sales through valid tax invoices, delivery of the goods has been taken off and the transactions have been done through banking channels. The registration of all the suppliers were also live and active when the purchases were affected and all the documents demonstrating genuineness of the transactions including proof of delivery are already in the possession of the Respondent. The electronic records are also with the Respondent and no further recovery is pending against the Applicant.
It was further stated that the Applicant has fully cooperated the authorities and the investigation qua the Applicant is already completed. There are no past antecedents registered against the Applicant and that no monetary benefit has accrued to the present Applicant in the present offence in question.
Advocate, Hetvi Sancheti appearing for Respondent No.2 has opposed the Application contending inter alia that the fraud in question is of huge amount in the sum of more than Rs.67.72 Crores, which is a systematic fraud and there are other similar such transactions had taken place previously also. It was submitted that fictitious firms were created and opened in the name of the present Applicant and his wife and the benefit of input tax credit was availed in the names of the said fictitious firms and therefore submitted to dismiss the present Application.
The Court of Justice MR Mengdey observed that “Having heard the learned Advocates for the parties and perusing the record produced in this case as well as taking into consideration the facts of the case, nature of allegations, gravity of accusation, availability of the Applicant Accused at the time of Trial etc. and the role attributed to the present Applicant accused, the present Application deserves to be allowed and accordingly stands allowed. This Court has also gone through the FIR and police papers and also the earlier order passed by the Sessions Court where the Sessions Judge has disallowed the bail Application at initial stage.”
“The Applicant Accused is ordered to be released on bail in connection with the aforesaid FIR on executing a personal bond of Rs.10,000/- with one surety of the like amount to the satisfaction of the trial Court, subject to the following conditions” the Court noted.
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