TaxTMI 
TaxTMI 
2025 (6) TMI 2022
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....ivities. That applicant/accused is law abiding citizen and has no prior criminal record. That applicant has been operating his business under supervision of the department and has acquired the GST registration after due compliance of the all the regulatory requirements. That present arrest of the applicant is a classical example of misuse of power given to the department. That applicant/accused has been arrested without any substantive basis and without any reasoning. That not a single piece of evidence is found against the accused even to make a prima-facie case against him. 2.2. That applicant/accused has been falsely implicated in this case without any substantive evidence and solely on the basis of third party statement of third persons. That the applicant/accused has duly received the goods from his suppliers and has made due payments against proper invoices. That it is well established principle of the CGST Act 2017 that buyer cannot be penalized on the default of his supplier. That the arrest of the applicant/accused has been made in complete disregard to the consistent cooperation of the applicant with respondent department in regard to their investigation in the impugned ....
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....elihood of the applicant absconding and/or tampering with the evidence or fleeing from the justice, which are the paramount considerations for the grant of bail. That applicant/accused has not been alleged with similar kind of allegations in past and applicant has clean antecedent and has not convicted in similar kind of other case in past and having deep root in society. Hence, present application. REPLY OF DEPARTMENT 3.Notice of this application was issued to Department/CGST and detailed reply was filed on behalf of CGST contending that on issuance of summons to Mohd. Kaif, Mohd. Kaif stated that he got in touch with Sh. Liyakat who is his cousin brother. That mobile phone of Sh. Mohd. Kaif was thoroughly checked and photos of multiple PAN cards and AADHAR card were found in the mobile. That in view of the findings, it appeared that Sh. Liyakat, Sumit and Omkar are the key person behind creation of fake firms and generating bogus bills with the help of Mohd. Kaif, Proprietor of M/s M.K Traders. 3.1. It is further contended that accordingly, search was conducted at the house of accused/applicant and during the search, 03 mobile phones were found available at the premises and tw....
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.... had gone much prior to that and counting the period from the time of time of accused having gone to the office, his detention will start and he should have been produced within 24 hours since then. It is further submitted as per the arrest memo, accused was arrested on 2.4.2025 but the Din number which is generated for mentioning on the arrest memo, as per the website of Central Board of Indirect Tax and customs, was generated at 3.08pm. It is also submitted that arrest memo also mentions before arresting the jama talashi of accused was taken and details of his belonging is as per the memo annexure A. That the documents of Jama Talashi shows to direct t having found from the possession of accused and one of them is arrest memo. It is also argued that once the jama talashi was before arrest, as to how accused could have be arrested memo with him. It is submitted that there has been a gross violation of the law laid down in this regard as even the grounds of arrest were supplied in the court and not forthwith as directed and mandated under various judgments of Hon'ble Supreme Court of India and Hon'ble High Court of Delhi. 4.2. It is also argued that accused is in custody for the l....
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....ative. It is submitted that multiple pan cards and Aadhar cards were recovered which were used by accused. It is submitted that accused is witty criminal who has caused loss to the exchequer. It is submitted that present bail application be dismissed. FINDINGS/DISCUSSION 6. I have heard the contentions on behalf of both the parties and perused the record. The allegations against the accused are of being creating web of multiple fake firms whereby accused has created facade of non-existent transaction with intention to illegally take advantage of input credit. That by indulging in such illegal activities, accused has caused loss of Rs. 17 crore to Government Exchequer. 6.1. Among others, one arguments taken on behalf of accused is of arrest being illegal. In that regard, various points have been raised. On behalf of State, it was argued that writ petition was filed in this regard but Ld. Defence counsel has produced the copy/print out of order of Hon'ble High Court of Delhi recording withdrawal of that petition by accused. It was contended on behalf of State accused is produced within 24 hours of arrest. On behalf of accused, it is submitted that they are disputing or contesting ....
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....t of India, HE had always joined the investigation. As per the case of prosecution itself, accused did not make any attempt to evade at the time of arrest. It is not the case of prosecution that accused did not appear when summoned. 9. Specific query was put in respect of summoning of accused after vacation of withdrawal of protection to accused. It was submitted that no summons were issued. Therefore, there is substance in the arguments on behalf of accused that he is not flight risk. 10. The accused is in custody from last about 57 days. It was argued on behalf of accused that in 60 days complaint is to be filed but same has not been filed till date. In this regard also, on query, it is submitted on behalf of Department that they are trying to file the complaint within time framed. However, another submission was also made that investigation is going on. Though, it was argued on behalf of State that admitting accused on bail may hamper the investigation. Yet it was not explained how the accused will hamper the investigation. It is not reported or argued that accused is involved in any other criminal case of similar kind or any kind. It implies that accused is first offender. 1....