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2022 (6) TMI 353 - DSC - GSTSeeking grant of Bail - availment and utilisation of ineligible Input Tax Credit (ITC) on the basis of fake invoices issued in the name of or by several fake/non-existent firms - violation of Section 132(1) (b) and (c) r/w. 132(5) of Central Goods and Services Tax Act 2017 - HELD THAT:- Offence committed by the applicant is economic offense which is well planned. In the investigation of the respondent, non existent/fake suppliers were noticed. Applicant availed benefit of ITC on the basis of fake invoices. Investigation is till in progress. There is documentary evidence against the applicant of his involvement in the commission of the crime. At the time of arrest, applicant was informed about the grounds of his arrest. Applicant was present at the office of respondent and his statement was recorded, this shows that applicant was aware about the matter against him. There is no violation of guidelines of Hon’ble Supreme Court in the matter of ARNESH KUMAR VERSUS STATE OF BIHAR & ANR [2014 (7) TMI 1143 - SUPREME COURT]. Further, this cannot be a sole ground to grant bail in such an offence. Therefore, it is not a fit case to grant bail. In the matter of DAULAT SAMIRMAL MEHTA VERSUS UNION OF INDIA THROUGH THE SECRETARY AND OTHERS [2021 (2) TMI 762 - BOMBAY HIGH COURT] is concerned, in this matter, investigation was going on for more than two years and thereafter, there was arrest of the applicant. After arrest of the applicant, he immediately filed application U/s.138 of CGST Act for compounding of offence. He was released on bail upon certain conditions including deposit of Rs.25 Crores. In the present matter, applicant has not shown his willingness to cooperate with the investigation. Applicant has not disclosed name of the broker through whom he received fake invoices. Suppliers of the applicant are fake/non existent. Investigation is started just prior to one month of arrest of the applicant. Investigation is still in progress. Therefore, ratio laid down in the cited judgment cannot be applied to the facts of the present case. Bail application dismissed.
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