2026 (1) TMI 1336

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....the IGST Act, 2017 1. This matter is taken up through hybrid arrangement. 2. Heard learned counsel for the parties. 3. The petitioner is an accused in 2(C) C.C. No. 35 of 2025 arising out of a complaint filed by the Directorate General of Goods and Services Tax Intelligence (DGGI), Rourkela Zonal Unit, for alleged offences under Sections 16(2), 7, 132(1)(b), 132(1)(c), 132(1)(f), 132(1)(i) and 132(5) of the CGST Act, 2017 read with Section 20 of the IGST Act, 2017. 4. The prosecution case is that intelligence developed through GSTN data analytics, BIFA portal and e-way bill systems revealed a network of newly registered, allegedly non-existent firms involved in fake invoicing of cement and steel and fraudulent availment of Input....

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....tion contending that the offence is non-bailable, grave and involves large-scale economic fraud adversely affecting public interest and the economy. It is asserted that the petitioner was the proprietor and active controller of M/s. Mahavir Construction and personally operated multiple bogus entities to fraudulently avail and utilize ineligible ITC of approximately Rs.15 crores through fake invoices without supply of goods. The prosecution relies on GSTN records, bank KYC, e-way bills, digital invoices, WhatsApp chats and financial trails to establish culpability. It is further contended that lawful search under Section 67(2) was conducted, the petitioner absconded during search, incriminating electronic devices were recovered, and corrobor....

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....icism from the quarters which view white collar crimes with a permissive eye unmindful of the damage done to the national economy and national interest." 9. In view of these compelling observations, it is abundantly clear that a different approach must be adopted in addressing offences of this nature. Hence, in this regard, it would be prudent to also refer to the judgment of the Supreme Court in the case of Y.S. Jagan Mohan Reddy v. CBI AIR 2013 SUPREME COURT 1933.: "34. Economic offences constitute a class apart and need to be visited with a different approach in the matter of bail. The economic offence having deep rooted conspiracies and involving huge loss of public funds needs to be viewed seriously and considered as grave ....