2022 (12) TMI 1131

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....t, 2017. It is claimed that virtual space was rented by the applicant/accused on a server alongwith other accused Ayush Jain and Nitesh Goyal. The said virtual space was utilized for storing data pertaining to bogus firms registered with GST. Thereafter, bills were generated and fake ITC was passed without any actual supply of goods. Up front, counsel for the applicant/accused has stated that the accused is in custody since 15.11.2022 and more than 35 days has elapsed since then. The Department has not carried out any custodial interrogation of the applicant/accused nor otherwise, interrogated him while in JC. It is claimed that in the present matter, no show cause notice has been issued nor any assessment order has been passed and re....

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....less grave and the aspect of parity applies with greater rigor. Alternatively, he argued that even if it is taken that the present applicant has the same role as that of Nitesh Goyal and Ayush Jain, even than, considering the period already undergone by him in custody, as also, the fact that the Department took about 10 months to file a complaint against Ayush Jain and even cognizance is yet to be taken and no assessment has been carried out so far, the present applicant/accused should be admitted to bail. Ld. Counsel for the Department has opposed the bail application. He has stated that the present accused was associated with 28 firms used for creation of fake ITC bills. He submits that the present accused was preparing the bills using....

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....e co-accused Ayush Jain was taking the server on rent and rotating the money. The present accused was behind creation of firms and issuance of bills and getting of customers. As far as creation of firm is concerned, again since the entire process was online, at least, technical investigation in this regard is required and is wanting. However, considering that investigation is being carried out, also the fact that as on date, there is no independent evidence other than the statements against the accused, as also, the fact that he has already spent more than 35 days in JC, as also, considering that co-accused has already been admitted to bail and Department has not sought the cancellation of the bail of co-accused, the present accused Shub....