TaxTMI 
TaxTMI 
2024 (3) TMI 678
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....023 and is in jail ever since. Learned senior advocate Mr. Nanavaty has also submitted that the investigation has already been completed and charge-sheet has also been filed. It is submitted that the applicant is a proprietor of M/s. Remgold International duly registered under the CGST Act and is indulged in the business of trading and brokerage at Rajkot and is no way connected with the instant case and has been falsely arraigned as an accused on the allegation that the applicant in connivance with the other individually indicted accused persons had allegedly issued GST invoices without any supply of the goods to the buyers on commission basis causing loss of Rs. 33 crores and odd to the government exchequer. 2.1 Learned senior advocate Mr. Nanavaty submits that on 29.04.2022 and 22.02.2023 the officials of the Directorate General of Goods & Services Tax Intelligence, Rajkot Regional Unit, Rajkot (DGGI in short) carried out a search at the business premises of the applicant and also searched the residential premises of the applicant on 25.07.2022 and during the search procedure, full cooperation was extended by the applicant-accused by providing all the information as sought fo....
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....and seizure procedure and all the documentary as well as electronic evidences have already been recovered by the investigator and thus no further recovery or discovery is pending against the applicant-accused. It is further submitted that the investigator has not been able to produce any incriminating material against the applicant-accused establishing his nexus with the instant felony, except the confessional statement of the applicant and other co-accused. Learned senior advocate Mr. Nanavaty would further submit that the present one is the sole offence ever registered against the applicant-accused under the provisions of the CGST Act. There are two other offences registered against the applicant-accused under the provisions of the Indian Penal Code, however, in both those offences, the applicant-accused has already been bailed out. It has been further submitted that as per the tenets of law laid down by the Hon'ble Apex Court in the case of Satender Kumar Antil vs. CBI & Anr, Misc. Application No. 1849 of 2021 in Special Leave Petition (Crl.) No. 5191 of 2021 decided on 11.07.2022, where there is noncompliance of Sections 41 and 41A of the Code, the applicant is entitled to bail....
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....licant-accused, he generated fake invoices and then sent to the other accused of the same syndicate on commission basis. It has been submitted that an organized syndicate is being run by number of fraudsters who are aiding and abetting each other in providing fake invoices to defraud the Government revenue. Learned advocate Mr. Raval has further submitted that apart from the present offence, the applicant-accused has also been booked in two other offences under the provisions of the IPC. It is submitted that the applicant is one of the conspirators in the scam of issuing fake invoices without supply of the goods and availing and utilising the ITC of Rs. 33 Crores and odd. Learned advocate Mr. Raval submits that since the amount involved is more than Rs.500 Lakh, the said offences are cognizable and non-bailable as per section 132(1)(i) and 132(5) of the CGST Act, 2017 and therefore urged not to exercise discretion in favour of the applicant-accused. 3.2 Learned advocate Mr. Raval further contended that the evidence collected so far clearly indicates that the accused is the co-conspirator in creating fake firms who subsequently defrauded the government exchequer to the tune of Rs....
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....an important factor which should certainly be taken into consideration by the court is the delay in concluding the trial. Here, taking into consideration the course of investigation adopted by the Department and the evidences so collected, the trial may take considerable time and thus it may happen, if nixed the bail, that the judicial custody of the applicant would be prolonged beyond the statutory period of punishment of five years as provided under the Act. 7. Section 132(1)(i) provides for punishment in cases where the amount of tax evaded or the amount of input tax credit wrongly availed or utilised or the amount of refund wrongly taken exceeds five hundred lakh rupees, with imprisonment for a term which may extend to five years and with fine; and section 132(2) provides that, where any person convicted of an offence under this section is again convicted of an offence under this section, then, he shall be punishable for the second and for every subsequent offence with imprisonment for a term which may extend to five years and with fine. Section 138 of the Act makes provision for compounding of offences under the Act, even after the institution of prosecution, on payment by ....
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.....C. confer discretionary jurisdiction on criminal courts to grant bail to the accused pending trial or in appeal against convictions; since the jurisdiction is discretionary, it has to be exercised with great care and caution by balancing the valuable right of liberty of an individual and the interest of the society in general. In our view, the reasoning adopted by the learned District Judge, which is affirmed by the High Court, in our opinion, is a denial of the whole basis of our system of law and normal rule of bail system. It transcends respect for the requirement that a man shall be considered innocent until he is found guilty. If such power is recognised, then it may lead to chaotic situation and would jeopardize the personal liberty of an individual". 10. Keeping in mind the nature of the offence, arguments canvassed by the learned counsel for the respective parties, evidence on record regarding complicity of the accused, larger mandate of the Article 21 of the Constitution of India and the dictum of law laid down by the Hon'ble Apex Court in the case of Dataram Singh Vs. State of U.P. and another, reported in (2018)3 SCC 22 as also the judgment delivered by the ....