TaxTMI 
TaxTMI 
2022 (8) TMI 405
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....32(1)(c) of the Gujarat Goods and Services Tax Act, 2017 by exercising powers under Section 69 of the Gujarat Goods and Services Tax Act, 2017 (hereinafter referred to in short as the 'GGST Act, 2017'). 3. The learned Additional Chief Metropolitan Magistrate, Ahmedabad by an order dated 24.02.2022 had granted custody for interrogation upto 15.00 hours of 03.03.2022. On 03.03.2022, the respondent No.3 moved an application for further custody for 5 days which was rejected by the Court vide order 03.03.2022. The respondent No.3 had challenged the order dated 03.03.2022 by preferring Criminal Miscellaneous Application No.38 of 2022 before the learned City and Civil Sessions Court, Ahmedabad and after hearing both the sides, the Sessions Court rejected the application by an order dated 08.03.2022. 4. The registration of 39 suppliers of M/s. Madhav Copper Limited has been cancelled ab initio on the ground that those registered dealers were fictitious entities. Hence, the Input Tax Credit (ITC) availed from these registered dealers were not available to M/s. Madhav Copper Limited. On completion of the investigation, the respondent No.3 - Assistant Commissioner of State Tax-4, Enforc....
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....how-cause notices have not been adjudicated. It is further submitted that the business transaction of M/s. Madhav Copper Limited for the period 01.07.2017 to 03.10.2019 has been assessed and show-cause notice has been passed and therefore, for the same period, there cannot be a second show-cause notice unless the first notice is adjudicated. 7. Learned Senior Counsel Mr. N.D. Nanavaty appearing for the applicant submits that after the arrest, the complaint in the form of charge-sheet is filed on 22.04.2022. The applicant had co-operated with the investigation and order of remand was sought for from the learned Additional Chief Metropolitan Magistrate and during the period, necessary interrogation was made of the applicant. It is also submitted that the applicant is having a manufacturing unit where comes the raw material and finished products are supplied. There is a valid registration with the GST Numbers. It is also submitted that the applicant is not a Proprietor of any bogus company. 8. It is submitted that there should not be any indiscriminate use of Section 69 of the GGST Act, 2017, where the powers so delegated should be only after proper application of mind and the C....
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.... 11. Learned Public Prosecutor Mr. Mitesh Amin alongwith learned Additional Public Prosecutor Mr. Pranav Trivedi appears for the respondent - State. It is submitted that the present applicant is the Director of M/s. Madhav Copper Limited. The scam alleged is of fake purchases to the tune of Rs.762.66 Crores from 36 fictitious entities and thereby availing Input Tax Credit of Rs.137.28 Crores wrongly. It is further submitted that about 39 supplier firms to Madhav Copper Limited were found fake. It is also submitted that it is the magnitude of the benefit illegally availed to be taken into consideration and the offence can be classified under Class 'A' and by running a Company by fake purchases, the applicant has defrauded the State Exchequer of almost Rs.138.70 Crores. The purchase has been shown of the raw material from the grey market, thus the cost would be low in selling the goods. It is further submitted that the applicant and the other accused are knowing the fake suppliers. However, no information is disclosed about the identity of the persons. It is contended that by fake supplies, the applicant has ensured that all the money goes back to M/s. Madhav Copper Limited. It is al....
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....n of granting anticipatory bail to the present applicant - Nileshbhai Natubhai Patel vide common judgment dated 14.10.2021 in Criminal Miscellaneous Application No.17697 of 2011 and allied matters. It is further submitted that the bail application of Mohammed Abbas Shabbirali Savjani v. The State of Gujarat and Another in Special Leave to Appeal (Crl.) No.6085 of 2022 was even rejected by the Hon'ble Apex Court and therefore, no relief has been granted to Mohammed Abbas Shabbirali Savjani (Mohamad Tata). 14. It is also submitted by the learned Public Prosecutor that the Whatsapp Chat of Mohammed Abbas Shabbirali Savjani (Mohamad Tata) with the present applicant and the Whatsapp Chat of Afzal Sadikali Savjani with the present applicant shows a connection of illegal transactions and the said Whatsapp Chat would reveal the connection with the Angadia Companies. It is submitted that both Mohammed Abbas Shabbirali Savjani (Mohamad Tata) and Afzal Sadikali Savjani had not co-operated with the investigation. Mohammed Abbas Shabbirali Savjani (Mohamad Tata) is still on the run. The questions raised during the investigation of the present applicant reflects his denial of knowing Afzal Sa....
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....itional Chief Metropolitan Magistrate has ordered to register the complaint vide order below Exhibit 1. The learned Magistrate on 22.04.2022 ordered to register the complaint and issue summons to the accused under Section 132(1)(c) of GGST Act, 2017 and CGST Act, 2017 read with Section 120B of the Indian Penal Code making it returnable on 05.05.2022 under Section 204(a) of the Code of Criminal Procedure, 1973. The applicant is still in jail. Thus as per circumstances, summons would have been served in jail. The trial would begin on the recording of the evidence from the side of the Department. There is no time bound procedure after the cognizance of the offence. Further, the trial will take its own time to conclude. 18. In the case of Sanjay Chandra v. Central Bureau of Investigation reported in (2012) 1 SCC 40, a reference has been made to the decision in the case of Sanjay Raghunathprashad Gupta v. State of Gujarat in Criminal Miscellaneous Application No.4146 of 2016, to observe that the important factor while deciding the bail application certainly would be to take into consideration, the delay in concluding the trial. 19. Section 132(1)(i) (Punishment for certain Offence....
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....d that without any bills / invoices, the present applicant had shown the suppliers only on paper without any actual transfer of the goods and in conspiracy with the shell companies had defrauded the Government Exchequer to the tune of Rs.138.71 Crores, while on the contrary the applicant has stated that he was dealing in purchase of goods under tax invoices after verification of the registration on the web portal of GST Department and has indicated that M/s. Madhav Copper Limited is engaged in the business of manufacturing of copper busbar, copper road, profile, copper fabricated products, enameled copper wire, paper covered copper conductor, polywrap submersible winding wire, fibre glass conductor, tap insulated copper conductor, bare copper wire and copper strips by making purchases of copper scrap from various suppliers from India and abroad and has individually purchased from registered dealers or suppliers. According to the applicant, the purchases have been made by tax invoices and E-Way Bills upon payment of applicable GST while dealing with the dealers having valid GSTIN. Taking into consideration the maximum punishment for the alleged offence and the provisions of compound....