2025 (11) TMI 1938

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....Section 132(1)(b) of the Central Goods and Services Tax Act, 2017 and punishable under Section 132(1)(i) of the Goods & Services Tax Act, 2017 and Section 20 (xv) of IGST Act, 2017. 2. As per the prosecution case, secret information was received regarding a firm named M/s Mefro Organic Limited, that it was availing ITC (Input Tax Credit) on the basis of goods-less invoices procured from 4 firms. Consequently, search was conducted in the premises of M/s Mefro Organic Limited as well as alleged supplier firms. During investigation, these 4 firms were found to be non-existent; further, the Directors and employees of M/s Mefro Organic Limited revealed that these good-less invoices were procured with the aid of Sh. Amit Mehra (present petitio....

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....nsel for the petitioner-accused Sh. Amit Mehra contended that there is no evidence to link the present petitioner to the beneficiary firms, nor any evidence to prove issuance of invoices of e-way bills by the petitioner. No investigation regarding the IP Address, or to trace any corroborative digital trail has been conducted by the Investigation Authority. Although both Sh. Amit Mehra and his accountant Mr. Bunty Malhotra were detained, but only the present petitioner Sh. Amit Mehra was arrested; and the documents and other records contained in the laptop recovered from Mr. Bunty Malhotra did not pertain to the business of the present petitioner, but to some other client of accountant Mr. Bunty Malhotra. The alleged invoices have not been i....

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....accounts. During investigation, several firms, who were end-availers, admitted to availing fake ITCs through Sh. Amit Mehra, with commissions ranging between 6% to 12%; on the basis of these admissions, partial recoveries were made. The investigation is still on-going with respect to tracing accomplices through the financial trail, and if petitioner-accused is set free, he may influence the beneficiaries as well as other accomplices involved in the network of bogus invoicing. Hence, prayed for dismissal of the bail application. 5. Heard. 6. As per the facts and circumstances of the present case, as well as the arguments advanced by the Ld. Counsel for the parties, the present petitioner-accused is alleged to have set-up as many as 44 ....