2025 (12) TMI 305

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....A. no. 959/2025 registered with GST under Section 132 of Goods and Services Tax Act, 2017. Perused application and say. Heard Ld. counsel Dr. Sujay Kantawala for applicant/accused and Ld. Special PP Mr. S. R. Pathak for GST at length. I have given my thoughtful consideration to the submissions advanced by Ld. counsels for both sides. 2] It is averred that, applicant is a permanent resident of Mumbai. He has been falsely implicated without adjudicating the liability about evasion of ITC. It is averred that, applicant has not committed any offence under MGST Act, 2017. The applicant during his statement has clearly stated that, it is his C.A. who look after the formalities for calculation of tax. It is averred that, the applicant has alrea....

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.... Rs. 58 crores. The accused has also passed the ineligible ITC to the tune of Rs. 56.63 crores without actual supply of goods. 5] It has been contended by respondent that, the investigation is in progress. It is alleged that the accused has orchestrated this web of fake transactions to create faced of legitimate business to avail huge amounts of loans against the inflated turn over. Investigation is at crucial stage. It is averred that, if accused released on bail he may abscond or tamper the evidence. Respondent prayed for rejection of the application. 6] The counsel of accused in support of his argument has relied upon in the case of Vineet Jain V/s Union of India, Criminal Appeal no. 2269 of 2025, Supreme Court decided on 28.04.202....

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....t has already collected the documentary evidence from the possession of accused. 9] The power to prosecute the tax payer under GST Act are ancillary and incidental to the power to levy and collect Goods and Services Tax. The MGST authority is investigating the matter in respect of GST transactions for the period from 01.07.2017 to 23.05.2023. The statement of accused/applicant are seems to be recorded. The applicant has assured to co-operate further investigation. No criminal antecedents shown against accused. The offence in question is triable by this court. Subject to certain restrictions the offences under GST Acts are of compoundable nature. Further more as argued by the counsel for applicant the directors of other related companies ....