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2021 (10) TMI 1305 - DSC - GSTSeeking grant of regular bail - passing of fraudulent ITC to buyers by way of creating a chain of bogus firms without physical receipt and supply of goods - certain firms which are operating only on paper - offence u/s 132(1)(b) and 132(1)(c)of Central Goods and Services Tax Act and Gujarat Goods and Services Tax Act, 2017 - HELD THAT:- The search was ordered to be conducted at the premises of M/s. Ronak Traders but the unit could not be located and again on 26/02/2021, search was conducted at the premises of M/s Ronak Traders and it was found that the unit is non-existing and it only exists on papers and there was no ITC in their GSTR-2A return which indicates that they had no inward supply and all the payment of GST had been made through ITC only, and accordingly panchnama dtd. 26/02/2021 was drawn and M/s. Ronak Traders passed on entire ITC of ₹ 10.36 crore to another firm namely M/s. S. K. Traders by showing entire supply to them. Therefore, search was conducted on 11/02/2021 at M/s. S. K. Traders premises also and the same was also found to be non-existing and panchnama dtd. 11/02/2021 was drawn. It is also the case of the prosecution that during the search the assessee was unable to produce any stock register / purchase invoices regarding said stock which is mandatory u/s 35 of CGST Act, 2017. Further, it appears from the affidavit of the prosecution that the investigation is still going on, hence, in these circumstances, it is not deemed fit to exercise discretionary power in favour of the present applicant-accused at this stage therefore following order is passed. The present application is hereby rejected.
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