TaxTMI 
TaxTMI 
2021 (5) TMI 674
X X X X Extracts X X X X
X X X X Extracts X X X X
....the same to one Rakesh, who utilised the same for the purpose of raising GST invoices and in turn, the said invoices were given to the petitioner, who, thereafter, filed the statutory returns. It is the further case of the respondent that the petitioner was receiving commission for selling the details of GST registration of defunct companies and that he was also aware that raising of invoices in the names of the defunct companies is illegal and, thereby, caused loss of GST to the tune of several Crores of rupees to the exchequer. It is the further stand of the respondent that the offence u/s 132 (5) of the CGST Act is a cognizable and non-bailable offence and the petitioner having committed the said offence, no bail can be granted to him. I....
X X X X Extracts X X X X
X X X X Extracts X X X X
....nless an assessment is made quantifying the loss caused to the exchequer and the culpability of the petitioner is made out by materials available on record, implicating the petitioner of the offence u/s 132 (5) of the CGST Act would not survive. Merely to deny the petitioner of his constitutional safeguards, viz., bail, the petitioner has been roped in as accused with the aid of Section 132 (5) of the CGST Act. Further, it is the submission of the learned senior counsel for the petitioner that the arrest of the petitioner itself is illegal, as he was detained for more than three days illegally before making the arrest, which is pursuant to the complaint lodged and in that backdrop as well, the act of the respondent reveals the mala fide int....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... defunct companies at a price and passing them over to other individuals, who are also accused in the present case, for higher amounts, being termed as commission. 8. It is the stand of the petitioner that he being only a middleman and having not filed any returns relating to the fake/fraudulent transactions and having been under incarceration for quite a long time, should be considered for grant of bail, as his prolonged incarceration is against the well accepted saying "Bail is the norm, while Jail is exception". 9. There is no second view that bail is the norm and jail is exception. But the said exception is always subject to just exceptions. In the case on hand, it is accepted by the petitioner himself that he had procured the cre....
X X X X Extracts X X X X
X X X X Extracts X X X X
....es forwarded to him by the other accused, viz., Rakesh and Praveen for the purpose of filing statutory returns. The petitioner is also aware of the fact that the companies for which invoices are forwarded to him by the other accused for filing statutory returns are only paper companies and there exists no business transaction insofar as the said entities are concerned. It is further evident from the counter of the respondent that the petitioner has stated that he used to get Whatsapp call and chats with the other accused were on Whatsapp pertaining to filing of GST returns relating to the fake/fraudulent transactions. Such being the undisputed position, the petitioner cannot come before this Court and claim that he was not aware of the acts....