2020 (5) TMI 170

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....han Case/ 2019-20 / B-42 came to be registered with office of Chief Commissioner of State Tax, Gujarat State, Ahmedabad. 2. The petitioner has been arrested for the offence punishable under section 132 of the Central Goods and Services Tax Act, 2017. The principal allegation against the petitioner is of his having obtained the tax credit to an extent of about Rs. 60 Crores through fictitious firms allegedly established by him in connivance with other persons who of course at the moment are not arraigned as accused. The maximum punishment for the offence is five years imprisonment. 3. The quantum of the sentence, recording of the statements of as many as 35 beneficiaries of the transactions, recovery of Rs. 14 Crores from them, the quantum....

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....ontended that such invoices were raised by the Traders to take benefit of tax credit. It was contended that several firms have been benefited out of such fake transaction and Rs. 14 Crores so far have been recovered from some of the firms. It was contended that although the complaint is filed against the petitioner in compliance with Section 167 of Cr.P.C, the case requires more investigation to unearth the racket involving innumerable firms. It was contended that nephew of the petitioner who raised the fake invoices in several firms is still at large. It is contended that evidence also shows the deposit of money in the account of one Harish, in the sum of Rs. 25 to 30 crores wherefrom after deduction of commission remaining amount is trans....

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....ions 420- B, 468, 471 and 109 of Indian Penal Code and Section 13(2) read with 13(i)(d) of Prevention of Corruption Act, 1988. 6. In the instant case, it appears that the case would require thorough investigation with the possibility of addition of more accused to the array; inasmuch as, as many as 406 summonses have been issued and 92 beneficiary firms are under scrutiny. Complaint might have been filed against the petitioner in compliance with Section 167 of Cr.P.C, that would however not preclude the investigating agency to investigate into what could be the huge racket and under such circumstances placing the petitioner out of jail would be potential threat to the investigation; inasmuch as, the manipulation of the evidence at the han....