TaxTMI 
TaxTMI 
2025 (6) TMI 1153
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....ed S.D.J.M., Bhubaneswar Sections 132 (1) (b), 132 (1) (c), 132 (1) (f), 132 (1) (I), and 132 (5) of the CGST Act, 2017. 1. Both the matters are taken up through hybrid arrangement. 2. Heard learned counsel for the parties. 3. The present bail petitions arise from 2(c) CC Case No.06 of 2025, registered pursuant to F. No. DGGI/INTL/1188/2024 dated 15.01.2025, pending before the Ld. S.D.J.M., Bhubaneswar. The case concerns allegations under Sections 132 (1) (b), 132 (1) (c), 132 (1) (f), 132 (1) (I), and 132 (5) of the CGST Act, 2017 against M/s Radha Raman Traders for fraudulent availment and passing of Input Tax Credit (ITC) without actual receipt of goods. The firm is said to have generated E-way bills for transport of goods su....
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....ued that the allegations pertain to availment of ITC on invoices without physical receipt, not tax evasion, and that taxes were duly paid on output supplies. He relies on Section 16 (2) (b) of the CGST Act and Section 31 (1) (b) of CGST / Section 10 (1) (c) of IGST Act, which recognize constructive delivery and allow ITC based on valid documentation, even without physical movement. The case is largely documentary and electronic in nature, involving official witnesses, leaving no scope for tampering or intimidation. He submits that he is a permanent resident, the investigation has progressed substantially, and his continued incarceration is unwarranted. 6. The prosecution contends that the accused persons, particularly Samir Kumar Sahu, hav....
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....financial fraud, and the risk to the integrity of the investigation, this is not a fit case for grant of bail at this stage. 8. Upon perusal of the case records, including the Preliminary Report, E-way bill records, GSTR filings, and statements of officials of the Directorate General of GST Intelligence (DGGI), this Court is of the considered view that the allegations, although at the stage of investigation, are serious in nature, involving an organized and deliberate scheme to defraud the exchequer through fraudulent availment and passing of Input Tax Credit (ITC). 9. It is pertinent to note that the offence under Section 132 (1) (b), 132 (1) (c), and 132 (1) (f) of the CGST Act, 2017 pertains to issuance and use of fake invoices without....
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....l, reasonable apprehension of the witnesses being tampered with, the larger interests of the public/State and other similar considerations." 11. Likewise, in the case of State of Gujarat v. Mohanlal Jitamalji Porwal and Anr. 1987 AIR 1321 the Supreme Court, while discussing about the serious repercussions of economic offences held as under: "5....The entire Community is aggrieved if the economic offenders who ruin the economy of the State are not brought to book. A murder may be committed in the heat of moment upon passions being aroused. An economic offence is committed with cool calculation and deliberate design with an eye on personal profit regardless of the consequence to the Community. A disregard for the interest of the Community....
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....sions that recognise constructive delivery and documentary entitlement. While such arguments are legally plausible, the present stage of proceedings is not one where the finer aspects of invoice validity or input matching can be finally adjudicated. The significant disparity between the ITC claimed in GSTR-3B and the input tax reflected in GSTR-2A/2B, alongside the absence of physical verification markers, is sufficient at this stage to establish a prima facie case worth investigating further without external interference. 15. The nature of the evidence, largely electronic and documentary, presents unique vulnerabilities. Unlike physical evidence, digital trails can be influenced with relative ease, and access to cloud-stored records or ba....