TaxTMI Login
Just a moment...
Press 'Enter' to add multiple search terms. Rules for Better Search
of 
of 
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of of 
All Case Laws
of of All Case Laws
Note
Bookmark
Share
Don't have an account? Register Here
of <h1>Alleged GST input-tax-credit fraud via fictitious firms and fake invoices - anticipatory/pre-arrest bail denied u/s482</h1> Dominant issue - entitlement to anticipatory/pre-arrest bail: the HC, exercising inherent jurisdiction under s.482 BNSS 2023, found specific and serious ... Anticipatory bail - custodial interrogation and tampering with evidence - fraudulent availment and circulation of ineligible Input Tax Credit - pre-arrest bail concession - High Court exercise of inherent jurisdiction u/s 482 of the Bharatiya Nagarik Suraksha Sanhita, 2023 - notice u/s 70 of the Central Goods and Services Tax Act, 2017 - HELD THAT:- It is apparent that there are specific and serious allegations against the petitioner who had allegedly managed two firms and floated fictitious firms thereby passing of fake ITC by showing fictitious inward supplies and by issuing fake invoices. The inquiry is at its nascent stage. As per the reply filed by the respondent, the petitioner has not cooperated with the inquiry conducted so far. Huge amount of Government exchequer is involved. Proper and thorough inquiry is required to be conducted in the matter. There is possibility of petitioner’s misusing the concession of pre arrest bail. Any latitude may enable him to avoid custodial interrogation, tamper with evidence or manipulate record by taking undue advantage of the legal and procedural loopholes. He may also influence the persons who are actually aware of the transactions and can also delay the investigation by avoiding his personal appearance. Thus, this Court is of the considered opinion that the petition does not deserve to be allowed. Accordingly, the same is dismissed. It is, however, made clear that the observations made herein above are only for the purpose of deciding this petition and the same shall not be construed as an expression of opinion by this Court on the merits of the case. Issues: Whether anticipatory bail should be granted to the petitioner accused of involvement in fraudulent availment and circulation of ineligible Input Tax Credit under the GST laws.Analysis: The allegations include management/control of two firms, creation of fictitious registrants and issuance of fabricated invoices resulting in large-scale wrongful availment and pass-through of ITC amounting to several crores. Investigation material alleges non-existent entities, mismatch between GSTR-3B and GSTR-2B/ledger entries, forensic evidence linking circulation of fabricated invoices, and non-cooperation by the petitioner. The inquiry is at a nascent stage and custodial interrogation is asserted to be necessary to prevent tampering with evidence, influencing persons aware of transactions and to enable effective investigation into alleged offences punishable under provisions of the GST statutes.Conclusion: Anticipatory bail is refused; the petition for pre-arrest bail is dismissed (decision adverse to the petitioner and favourable to the Revenue).
TaxTMI 
TaxTMI 
