AI Drafter 
TaxTMI 
TaxTMI 
2022 (7) TMI 1022
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....ce of Principal Commissioner, Central Excise and Central G.S.T., Raipur, District Raipur (C.G.) for the offence punishable under Section 132(1)(C) of Goods and Service Tax Act, 2017 (for short 'the G.S.T. Act'). 2. The prosecution case, in brief, is that on the basis of Alert Letters, on 28.03.2022, in order to recover documents secreted at his premises to unearth the evasion of the GST amount, conducted search at the residential premises of the applicant, who is proprietor of M/s Shree Sainath Enterprises, Raipur. During search and scrutiny of documents & data analysis, it was revealed that the applicant's firm purchased iron scrap from M/s Kalodia Traders and M/s S.R. Enterprises and eight others firms whose GST registratio....
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....earned counsel also submits that the charge-sheet has been filed and there is no evidence on record to demonstrate that applicant has prepared forged and fictitious firms to avail benefit of input tax credit illegally. It is next submitted that the respondent conducted search at the residential premises of the applicant without any prior inquiry, assessment and demand notice & ignoring the documents produced by the applicant, the offence has been registered. It is further submitted that nothing suspicious has been seized from the possession of the applicant, which would show that the applicant created or managed forged and non-existed firms and fraudulently availed input tax credit. Further submission of learned senior counsel is that the a....
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....nion of India reported in 2016 SCC OnLine Del 4951, order of High Court of Bombay in the matter of Meghraj Moolchand Burad v. Directorate General of GST (Intelligence) and Another reported in 2018 SCC Online Bom 20135. 4. On the other hand, Mr. Manish Sharma, learned counsel appearing for respondent opposing the bail application submits that the applicant has been found to be habitually involved in procuring fake invoices from fake and fictitious firms, availing ineligible Input Tax Credit on the basis of such invoices and thereafter, passing on such ineligible and illegal Input Tax Credit to other unscrupulous suppliers, mostly within the State of Chhattisgarh, thereby seriously denting the Government Exchequer. He further submits that ....
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....ant were found to be two wheeler/car etc. Learned counsel also submits that the data analysis and scrutiny of records confirmed that the total ITC amounting to Rs.5,68,95,176/- had been fraudulently availed and subsequently passed on by the firm M/s Shri Sainath Enterprises, owned by the applicant. Learned counsel for respondent also submits the under Section 167 (2) of Cr.P.C., the respondent has to file charge-sheet within 60 days but the investigation is going on and further investigation are underway in order to unearth more such persons/firms to whom the fruits of such crime have been passed on and to also to unearth all such persons/firm who have been involved with the applicant. Learned counsel lastly submits that in view of ongoing ....
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....516, judgment of High Court of Calcutta in the matter of Arvind Kumar Munka v. Union of India reported in 2020 SCC OnLine Cal 531 and order of High Court of Punjab & Haryana at Chandigarh dated 23.01.2020 passed in Criminal Misc.-M-50256/2019 (Sanjay Dhingra v. Director General of Goods and Services Tax Intelligence). 5. I have heard learned counsel for the parties, perused the case diary. 6. A bare perusal of case diary goes to show that initially on the basis of two Alert Letters C. No.IV(6)13/AE/RKL/2022/1056-A and F.No.DGGI/BbZU/INV/123/GST/2019/2539 issued by Assistant Commissioner (AE), Rourkela and Additional Director, DGGI, Bhubaneswar respectively, regarding sharing of information in case of non-existent business entity, the ....
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....eby posing serious threat to the financial health of the country. Economic offence is always committed with calculated design profiting himself regardless of the consequence to the community. 8. The Co-ordinate Bench of this Court, relied upon the decision of Hon'ble Supreme Court in the matter of Nimmagadda prasad v. Central Bureau of Investigation reported in (2013) 7 SCC 466 in the matter of Paritosh (supra), wherein Hon'ble Supreme Court observed in para 24 as under :- "While granting bail, Court has to keep in mind the nature of accusations, nature of evidence in support thereof, the severity of the punishment which conviction will entail, the character of the accused, circumstances which are peculiar to the accused....