Wrongful availment of ITC: Rajasthan HC refuses to grant Bail to accused of GST Scam worth Rs. 47 Cr [Read Order]

Wrongful availment of ITC- Rajasthan High Court - grant Bail - GST Scam - Taxscan

The Rajasthan High Court refused to grant bail to the person accused of wrongly availing ITC without the transportation of goods.

The petitioner, Sumit Dutta, was an employee in M/s Veto Merchandise and resigned in February 2020. It is also contended that petitioner has also furnished details to establish that there was actual movement of the goods. It is further contended that co-accused Bhasker Jangir has been given the benefit of bail by this Court. It is contended that offence is punishable by five years imprisonment and is triable by Magistrate.

The Public Prosecutor has opposed the bail application. It is contended that at the relevant time petitioner was a partner in M/s Veto Merchandise and a sum of Rs.47 crore was claimed as Input Tax Credit without any transportation of goods. It is also contended that on the basis of fake bills and invoices input tax credit was passed on to firms which were existing in papers. It is contended that the sum involved is to the tune of Rs.47 crore.

The single judge bench of Justice Pankaj Bhandari while upholding the contention of the public prosecutor  rejected the bail application.

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