TaxTMI 
TaxTMI 
2024 (8) TMI 1384
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....ismatch or very high mismatch in its inward supply from GSTR-2A and GSTR-3B to the said firm. Accordingly searches at the office and residence of the partners of M/s Okito Tradeco LLP as well as its five suspicious inward suppliers, namely, M/s Pure Bitumen, M/s Global Enterprises, M/s Sky Suppliers, M/s G.S. Traders and M/s Encore Inc. were conducted on 30.4.2024. During course of search, the aforesaid five inwards suppliers were not found in existence at their registered place of business. Further, some of the inward suppliers were found to have obtained GST registration on the basis of forged electricity bills. Effort was made to contact the Proprietors of the said firms on their respective contact numbers as available on AIO Portal, but they could not be contacted. Thus, the said firms were found non-existent at their respective registered premises. Further, during the search at the place of business of Ms Okito Tradeco LLP some incriminating documents were also resumed under panchanama dated 30.4.2024 and during forensic examination of the devices surrendered by the partners of M/s Okito Tradeco LLP, chats were recovered from the agents indicating exchange of cash and issuance....
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....implicated in this case by the concerned department. It is further submitted that the applicant is a partner in M/s Okito Tradeco LLP and the said partnership firm is engaged in the business of production / manufacturing road construction materials e.g. bitumen etc. The applicant's firm has been an active taxpayer since its establishment and is giving impetus to the public exchequer. No notice for recovery of GST has been issued against the applicant. Provisions of Sections 41, 41-A of CrPC and Section 69 of the C.G.S.T. Act have not been complied with in the instant matter. Applicant has not caused revenue loss to the exchequer nor evaded payment of tax. Further, he urged the prosecution in the case in hand is bad for want of previous sanction of Commissioner. 6. It also submitted that no statement recorded during investigation by the departmental officers is relevant unless it is tested in the cross-examination before the Court. It is further submitted that the signature of the applicant was obtained on some papers by force by the departmental officers. It is next submitted that at the time of judicial remand the department never prayed for custodial interrogation from the p....
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....ged in the availment and utilization of ITC from the suspicious suppliers. Searches at the office and residence of the partners of M/s Okito Tradeco LLP as well as at its five suspicious inward suppliers were conducted on 30.4.2024 and all the five inward suppliers were found non-existent and some of the said inward suppliers were found to have obtained GST registration on the basis of forged bills. It is also submitted that on the basis of evidence collected during investigation it is found that M/s Okito Tradeco LLP has availed fraudulent ITC by way of receiving bills without any concomitant supply of goods from the aforesaid five non-existent supplier firms amounting to Rs. 8,47,08,391/-. It is also clear from the evidence on record i.e. visit notes, forged electricity bills, WhatsApp chats and confession of the applicant in his statements dated 30.4.2024 and 1.5.2024 that the applicant was looking after all the purchase related activities from the five non-existent firms. He was aware of all the frauds and moreover WhatsApp chats and excel sheets retrieved from mobile phone of the applicant revealed that he was looking after all the operations related to cash handling. The acti....
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....e Court. The gravity for the said purpose will have to be gathered from the facts and circumstances arising in each case. Keeping in view the consequences that would befall on the society in cases of financial irregularities, it has been held that even economic offences would fall under the category of "grave offence" and in such circumstance while considering the application for bail in such matters, the Court will have to deal with the same, being sensitive to the nature of allegation made against the accused. One of the circumstances to consider the gravity of the offence is also the term of sentence that is prescribed for the offence the accused is alleged to have committed. Such consideration with regard to the gravity of offence is a factor which is in addition to the triple test or the tripod test that would be normally applied. In that regard what is also to be kept in perspective is that even if the allegation is one of grave economic offence, it is not a rule that bail should be denied in every case since there is no such bar created in the relevant enactment passed by the legislature nor does the bail jurisprudence provide so. Therefore, the underlining conclusion is tha....