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2021 (12) TMI 1263 - DSC - GSTSeeking grant of anticipatory bail - allegation is that the applicant availed as well as passed on ineligible input tax credit from and to non existing firms - HELD THAT:- In the case in hand, on perusal of material on record and the investigation papers it appears that the applicant’s Swara Jewels had dealt with Arihant Traders and M/s. Sandeep Trading. The ITC availed in connection with these two firms is difinitely below ₹ 5 crores. However, the matter does not end here. Dealing with golden Bullion and Gajmukhi Bullion and Mumbadevi also, the applicant availed ITC. The total amount of availment of ineligible ITC is more than ₹ 6 Crores. It may be noted here that respondent No.2 had inputs that Gautam Joshi has created fake entities, and the applicant Swara Jewels has paper transaction with the same entities. Respondent No. 2 has recorded the statement of Gautam Joshi where he admitted that he has created fake entities as Mumbadevi Jwellers and Arihant Traders. The statement of the applicant as recorded by respondent No.2 also reveals that the applicant has dealt with these entities i.e. Arihant Trading, M/s. Sandeep Traders, Gajmukhi and Mumbadevi Bullion in connection with Guatam Joshi. At this infant stage of investigaion, this much material is sufficient to make out prima facie case against the applicant. Since apparantly, these entities do not exist, if anticipatory bail is granted, the applicant is likely to destroy the evidence regarding the matter. This Court is not inclined to grant anticipatory bail to the applicant as the investigation is at initial stage and apparently at this stage as per the contention of respondent No. 2 the amount of availament of input tax credit is more than ₹ 6 Crores which may rise up in further inquiry - anticipatory bail cannot be accepted. Application rejected.
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