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2022 (8) TMI 918 - DSC - GSTSeeking grant of Anticipatory Bail - preparing fake ITC invoices with intend to cause wrongful loss to the Govt. - evasion of mandatory CGST thereby committing fraud and cheating - Circular trading - Section 132 of Central Goods and Service Tax Act, 2017 - HELD THAT:- On careful perusal of the documents it appears investigation was carried out by Anti Evasion of Central Goods and Service Tax and Central Excise (CSGT) and it is revealed that the mentioned company is of applicant/accused was engaged in circulating, receiving and issuing fake invoices for the purpose of availing ITC and passing it to other companies without any actual movements of goods which is an offence under Sec. 132(1)(b)(c) of CGST Act, 2017 - Over all as alleged there is an involvement of tax component of Rs. 6.65 Crores for the period from F.Y. 2017-18 to F.Y.2020-21. It further appears from the enquiry the applicant was aware of the activities of fake invoices. The essence of main allegations of the respondent are that applicant is guilty of circular trading by claiming Input Tax Credit (ITC) on the materials without movement and passing on such ITC to companies and therefore there has been contravention of Sec. 132(1)(b)(c) which is cognizable and non bailable offence U/Sec. 132(5) of the CGST Act. There are some admissions from M/s. Amarnath Industries were aware of some illegal transactions being carried out by accused applicant company for the purpose of evading CGST - It appears instead of cooperating with the ongoing investigation by submitting relevant documents and making themselves available for further investigation and enquiry. Applicant filed an anticipatory bail application before this Court. Looking at the gravity of the offence and the amount involved for which an offence U/sec. 151(1)(c) of CGST Act is imposed for evading huge amount of GST and thereby defrauding the Govt. Exchequer for the tune of Crores of Rupees, investigation is in progress and if released on prearrest bail the investigation will become stagnant and they will tamper with the evidence - It is apposite to note that as per Sec. 132 of CGST Act, 2017 issuance of invoice or bill without supply of goods or services and wrongful availment or utilisation of input tax limit is cognizable and punishable offence if the amount is over Rs. 5 Crores. In the instant case prima facie there appears a sufficient material which requires physical interrogation. Anticipatory bail application dismissed.
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