TaxTMI 
TaxTMI 
2023 (11) TMI 1052
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....d firm had 'NIL' inward supplies on the E-waybill portal, however they had made huge outward supplies. In the absence of in-ward supplies, the outward supplies made by these suppliers seemed suspicious. The details of the L-2 Suppliers M/s Star Scrap Trading Company (GSTIN-07HBFPM4269G1ZC) which are found to have-Nil- Inward supplies and huge outward supplies as per E-Way Bill Portal. Further, analysis of the records of M/s. Star Scrap Trading Company reveals that its L-1 suppliers were involved in avalling and passing on of ineligible ITC on the strength of fake invoices issued without actual supply of goods. Thereafter, search under Section 67(2) CGST Act was conducted inter alia at the principal place of business of M/s. Star Sc....
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....stent at their respective registered principal place of business. Thereafter, summons under Section 70 CGST Act were issued to inter alia the accused Iftikar Malik, Harmeet Singh Gujral and Rajan Parmar for 12.10.2023. The accused Iftikar Malik, in his voluntary statement dated 12- 13.10.2023 recorded under Section 70 of the CGST Act, has admitted to have availed ineligible ITC as per EWaybill Analytics Portal worth Rs. 5,38,81,4431/- which was availed from various firms namely M/s DY Enterprises, (GSTIN-07GXGPP7422G1Z7), M/s ALI TRADING AND CO. (GSTIN- 07AJGPN1555L1ZY), M/s Golden Trading (GSTIN-07ANOP17379F1ZI) without actual supply of goods which led to wrongful availment and utilization of input tax credit and thereby causing huge loss ....
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....falsely implicated in this matter. It is further argued by Ld. Counsel for accused that mandatory Section 41 A CrPC has not been followed in this matter by the department and the applicant has been arrested just after summons u/s 70 CGST Act. It is further argued by the Ld. Counsel for accused that in present case the department is alleging ineligible availaing of ITC to the tune of Rs. 5,38,81,443/- while ITC offences upto the level of 5 crore are bailable offences. It is further argued by the Ld. Counsel for accused that entities MK Trading Company, Malik Junk Merchant, Hitachi Trading Company are outside the jurisdiction of CGST West and CGST West does not have jurisdiction over the said entities, after removing the ITC of these three co....
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..... 1831/2019 by Hon'ble Supreme Court of India on 04.12.2019 4. Arnesh Kumar Vs. State of Bihar and Another (2014) 8 Suprme Court cases 273 5. Akhil Krishan Maggu Vs. Deputy Dir., DG of GST Intelligence 2019 SCC OnLine P&H 7785 Ld. SPP for CGST argued that applicant has availed the ITC of Rs. 5,38,81,443/- and during analysis of record of M/s Star Scrap Trading Company it was revealed that L1 suppliers were involved in availing and passing of ineligible ITC on fake invoices without actual supply of goods, the applicant was operating MK Trading company, Malik Junk Merchant and Hitachi Trading Company from jurisdiction of West CGST and these entities were not found at the address mentioned therefore, this matter falls within the jurisd....
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....ut the same fact has not been verified by the department. In the order of Akhil Krishan Maggu (supra), it was held by Hon'ble Punjab and Haryana High Court after relying upon the judgment of Hon'ble Delhi High Court, Hon'ble Madras High Court and Hon'ble Supreme Court that: 10. Taking cue from judgment of Delhi High Court in the case of Make My Trip (Supra) followed by Madras High Court in the case of Jayachandran Alloys (P) Ltd (Supra), law laid down by Hon'ble Supreme Court in the case of Siddharam Satlingappa Mhetre (supra) as well keeping in mind Section 69 and 132 of CGST Act which empower Proper Officer to arrest a person who has committed any offence involving evasion of tax more than Rs. 5 Crore and prescribed maximum sentenc....
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....14.10.2023, the offence falls within preview of Section 41 A CrPC having punishment of 5 years but no notice u/s 41 A CrPC has been given, therefore, in view of the abovesaid facts and circumstances, the present applicant Iftikar Malik is admitted to bail, on furnishing personal bond in the sum of Rs. 1,00,000/- with two sureties of like amount and subject to the satisfaction of Ld. MM/Ld. Link MM/Ld. Duty MM with following conditions:- 1. he will provide his mobile number to the IO. 2. he will keep his mobile phone on at all times. 3. he will drop a PIN on the google map to ensure that his live location is available to the Investigation Officer of the case everyday during the period of investigation/trial. 4. he will mark his at....