Home Case Index All Cases VAT and Sales Tax VAT and Sales Tax + HC VAT and Sales Tax - 2017 (11) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (11) TMI 745 - HC - VAT and Sales TaxBail application - input tax credit - petitioner is alleged to have floated 40 shell companies with a view to gain illegal input tax credit under the provisions of Gujarat Value Added Tax Act - The modus operandi alleged against the petitioner is to get registered the TIN number of certain entities on monthly remuneration to be paid to them - whistle blowing mechanism - Held that: - it is difficult to conclude at this stage that the petitioner accused had used the said material and there exists doubt as to whether the said material was being used by Mukesh Mehta to whom the premises were rented out by Geetaben, the owner of the premises. Therefore such recoveries prima facie do not constitute a credible information or reasonable suspicion qua the petitioner. Further except, as above, there is nothing on record to indicate that said house was possessed by the petitioner jointly with Mukesh Mehta. The respondent claims to have knowledge of dubious transaction as is evident from its affidavit. If that was so, nothing could have prevented it from coming out with incriminating material. There is also no material placed on record to substantiate the allegation about bogus billing. Not a single bogus bill is placed on record. It is not even pointed out as to how the goods or services were delivered by bogus billing. If the shell companies were said to be benefited by bogus billing, obviously, there would be exchange of bogus bill, challans or other similar documents. No such facts are substituted - It is also not pointed out as to which firms amongst the 40 shell companies were benefited by dubious billing and to what extent. Bail application is allowed and applicant is ordered to be released on bail.
|