TaxTMI 
TaxTMI 
2021 (6) TMI 676
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....c) of CGST Act, 2017. 4. It is alleged that on 29.2.2020 a search conducted at the office premises of one Santosh Kumar Gupta, Proprietor of M/s. Pacific Packaging Industries. In course of search, it was found that 10 fake firms operated by Santosh Gupta which were non-existent and are not making any business. On further investigation, it was found involvement of two intermediary firms namely M/s. Sony Iron and Steel Trading Co. and M/s. Harihar Enterprisers who have availed fraudulent ITC (Input Tax Credit) from the above non-existence firms. The petitioner happens to be the proprietor of M/s. Sony Iron and Steel Trading Co. and managing both the firms. It is further alleged that during scrutiny of various documents, it came to light th....
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....lthough this Court is cognizant of the fact that some accused persons in some similar cases have been enlarged on bail but every case turns on its own facts and circumstances. 9. The law relating to bail in cases of economic offences is more settled in view of the decision of the Hon'ble Supreme Court of India in Nimmagadda Prasad vs Central Bureau of Investigation which held that: "23. Unfortunately, in the last few years, the country has been seeing an alarming rise in whitecollar crimes, which has affected the fiber of the country's economic structure. Incontrovertibly, economic offences have serious repercussions on the development of the country as a whole. In State of Gujarat v. Mohanlal Jitamalji Porwal and Anr....
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....ving" instead of "the evidence" which means the Court dealing with the grant of bail can only satisfy it as to whether there is a genuine case against the accused and that the prosecution will be able to produce prima facie evidence in support of the charge. It is not expected, at this stage, to have the evidence establishing the guilt of the accused beyond reasonable doubt. 25. Economic offences constitute a class apart and need to be visited with a different approach in the matter of bail. The economic offence having deep rooted conspiracies and involving huge loss of public funds needs to be viewed seriously and considered as grave offences affecting the economy of the country as a whole and thereby posing serious threat to the ....
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....to curtail his freedom in order to enable the investigation to proceed without hindrance... .For these or other reasons, arrest may become an inevitable part of the process of investigation. ... The role of the investigator is well defined and the jurisdictional scope of interference by the court in the process of investigation is limited. The court ordinarily will not interfere with the investigation of a crime or with the arrest of the accused in a cognizable offence. ..." 11. Thus, as the law stands, in such type of offences, while granting bail, the Court has to keep in mind, inter alia, the larger interest of the public and State. The accused is active in creation and operation of the nonexistent business entities for availing and p....