2024 (1) TMI 1097

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....dent received intelligence report that M/s Radhe Construction, Raipur having GSTIN 22AHUPV6648N1Z9 was engaged in passing on unauthorized Input Tax Credit to various unscrupulous Assessees without supply of goods. The said firm was operated by one Manoj Kumar Valecha. During further investigation, two other fake firms namely M/s Disha Traders & M/s Mukesh Traders were also found to be operated and managed by some person to pass on fraudulent Input Tax Credit to various taxpayers. In the statement of Manoj Kumar Valecha recorded under Section 70 of the CGST Act, 2017, he stated that he has passed on fraudulent Input Tax Credit to M/s Ganpati Transport & Trading. During investigation it revealed that M/s Ganpati Transport & Trading was indulg....

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....es without supply of goods after availing fraudulent Input Tax Credit. It is further contention of learned counsel for respondent that merely because the complaint application is filed before the Court, the applicant is not entitled for benefit of bail when the investigation is still going on. Release of applicant may affect the investigation as there is apprehension of destroying further evidence and may influence the witnesses required to be examined during the investigation. In support of his contention he places reliance upon the decision in the cases of Paritosh Kumar Singh vs. Senior Intell. Officer [MCRC No. 6764/2021, High Court of Chhattisgarh], Pankaj Agrawal vs. Union of India [MCRC No. 3769/2019], Bajan Lal Bishnoi @ Rohan vs. S....

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....y availing fraudulent Input Tax Credit. 7. The submission of learned counsel for respondent is that the investigation is still going on as the fraud is committed at pan India level. True it is that there is no hard and fast rule of granting or refusing bail to applicant, each case has to be considered on its own merits. The discretion of the court has to be exercised judicially. In the instant case the alleged GST fraud committed by applicant is having humongous ramification on the revenue collection by the State. The possibility of the accused tampering the evidence and/ or influencing/intimidating the witnesses also cannot be ruled out. 8. Hon'ble Supreme Court in the case of Sandeep Goel vs. Union of India [Special Leave to Appeal (Crl....