TaxTMI 
TaxTMI 
2021 (12) TMI 371
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....d on 27.10.2021 and since then he is in judicial custody and therefore, seeks enlargement on bail under the provisions of Section 439 of Cr.P.C. 2. Learned Advocate for the applicant-accused Mr.Varis V. Isani appeared before this Court and has submitted that the present applicant is a director and authorized person in the company namely M/s. Air Wind Green Energy Limited, a public limited company and holding GST Registration 24AANCA9739J2Z3 w.e.f. 13.09.2017, which was engaged in trading business of ferrous scrap, iron and steel scrap and the company is registered with SEBI, ROC having registration and books of accounts are audited under the various act and company is into the trading business and purchasing goods from the various registered suppliers and sales to various registered suppliers. He further submitted that the allegations are such that the applicants claimed to purchase the material work of Rs. 33.56 crores having claimed of Input Credit of Rs. 6.04 crores, which in fact, has not purchased but fake bills have been obtained without supply and receipt of the goods so as to wrongfully claimed input tax credit. He further submitted that the purchaser have received the goo....
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....as found during the course of search at the business premises of the applicant. That the case is based on documents and no custodial interrogation is required and thus, the applicant can be enlarged on bail. It is clear case of tax dispute and not the economic offence. It is further submitted that in case an assessment is framed, the applicant can obtained the stay of entire amount by paying 10% of the disputed tax amount as per section 107(6)(7) (8) of the CGST Act. Trial of the case may take long time and if the applicant will remain in jail for long time then in absence of breadwinner, his family will have to face starvation. The applicant is permanent resident of Bhavnagar and if released on bail, will not likely to abscond or to tamper evidence of the prosecution by inducement or threat to witnesses and shall fully cooperate with the investigation. The applicant is ready and willing to furnish bail bond of the amount as deem fit to the Hon'ble Court and admit to comply the conditions that may be imposed. Therefore, this Court has vast powers to release on bail. Hence, it is prayed to grant the present application. 3. Learned Special Public Prosecutor Mr.M.R.Joshi appeared....
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.... General of Goods and Services Tax Intelligence, Ahmedabad Zonal Unit, Ahmedabad produced on record. I have also read the papers and I have also considered all the documents produced on record. 6. Considering the above, I would like to refer judgments and relevant paragraphs thereof, upon which the learned advocate for the applicant has placed reliance. 7. Shri Avainash Aradhya, Shri Mallokaradhya I.P. vs.The Commissioner of Central Tax Bangalore East Commissionerate reported in 2019 (3) TMI 373 Hon'ble Karanataka High Court vide para 11, held as under : 11. A close glancing of the above proposition of law with present Act, the punishment imposed is five years, in that light, the alleged offences are non-cognizable offences. By keeping the above proposition of law and on plain reading of all these sections together, one thing in the case is clear that the said offences are compoundable by the Commissioner on payment on payment and maximum punishment of five years with fine and they are not punishable with death or imprisonment of life. When the maximum punishment which can be imposed is only upto five years with fine, will throw light on the seriousness of the offence. Th....
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....t and it would be improper for any Court to refuse bail as a mark of disapproval of former conduct whether the accused has been convicted for it or not or to refuse bail to an unconvicted person for the purpose of giving him a taste of imprisonment as a lesson." Para 16. "This Court, time and again, has stated that bail is the rule and committal to jail an exception. It is also observed that refusal of bail is a restriction on the personal liberty of the individual guaranteed under Article 21 of the Constitution. 9. Considering the above proposition of law and facts of the present case and after perusing the police papers, it seems that the applicant has alleged to have played role in offence. Looking to the fact of the case, evidence on record, it appears that the applicant has fraudulently availed Input Tax Credit (ITC) amounting to Rs. 6.04 crores by using modus operandi of issuing fake invoices and passed on fraudulent ITC to their buyers situated at various places without supply of corresponding goods mentioned in the said invoices. Further huge and voluminous documents related to the transactions of sales and purchases were seized. The punishment prescribed for the alleged....