2023 (7) TMI 1295

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....No. V/AE/Bel/12-432/Amarnath/2021-2022. 2. The Anti Evasion Central Goods and Services Tax Act, Belapur, initiated inquiry against M/s. Amarnath Enterprises, a proprietorship concern of Priyesh Kumar for availing fraudulent Input Tax Credit (ITC) of 14.48 Crores for the period from August 2018 to March 2022. It was revealed that M/s. Amarnath Enterprises had issued fake invoices in favour of fictitious non existing entities without actual purchase and sale of goods and further passed on fake ITC of Rs. 13.31 Crores to various recipients across the country. Priyesh Kumar, the proprietor of M/s. Amarnath Enterprises was placed under arrest. In his statement recorded under Section 70 he stated that he had established the said proprietorship c....

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....reveals that the Applicant is trying to conceal the information. The learned Judge held that the Applicant is involved in committing economic offence, which affects the economy of the country. Considering the nature and the gravity of the offence, the learned Judge declined to exercise discretion under Section 438 of Cr.P.C. Hence the present application. 4. Shri Niranjan Mundargi, learned Counsel for the Applicant submits that the Applicant is neither associated with M/s. Amarnath Enterprises nor concerned with transactions of M/s. Amarnath Enterprises. He submits that the Applicant, who is the director of Photokom Industries (INDIA) Pvt. Ltd. has paid all GST of sale and purchases relating to his Company. 5. Mr. Mundargi submits that Mr....

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....of M/s. Amarnath Enterprises had raised fake invoices, without actual purchase and sale of goods and for the said purpose, the Applicant herein had paid to him 2% to 3% commission on the value of the transaction. He submits that the Applicant has not cooperated with the investigation and has refused to share his email id and the password. In the circumstances, custodial interrogation is essential to unearth the conspiracy. 8. I have perused the records and considered the submissions advanced by the learned counsel for the respective parties. 9. A perusal of the records prima facie indicate that an inquiry was initiated against M/s. Amarnath Enterprises, a proprietorship concern of Priyesh Kumar, who allegedly availed fraudulent ITC from f....

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....ss on fake ITC. He would get commission of 2% to 3% of the value of such transaction for issuing fake invoices. The balance amount was initially paid to the Applicant in cash and later remitted in multiple accounts of the Applicant as per his directions. 12. The Bank statement of M/s. Amarnath Enterprises for the period from July 2018 to March 2022 reveals that a large sum of money was transferred to the account of Shreeji Jewellers and Shrinath Jewels and others. The statements of the proprietors of these entities reveal that the Applicant had informed them that M/s. Amarnath Enterprises is his company and that they had handed over to the Applicant, at his instance, diamonds equivalent to the value of the amount received from M/s. Amarnat....