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2023 (10) TMI 411 - HC - GSTSeeking grant of Interim Bail - Input Tax Credit - creation of fake entities to avail Input Tax Credit, without actual supply of goods - HELD THAT:- The order of cancellation of registration was passed on 11 November 2022, to take effect from 26 November 2020. Resultantly, the alleged availment of Input Tax Credit cannot be said to be from the very entity whose registration had already been cancelled. Since the major component of the wrongfully availed Input Tax Credit to the tune of Rs. 7.74 Crores is attributed to M/s. Sunshine Traders, the order of restoration of the registration does bear upon the Respondent’s case against the applicants. Secondly, the applicants have appeared before the Investigating Officer, as directed. As many as seven statements of the applicant No. 1 have been recorded. Relevant documents appear to have been collected. It cannot be, thus, urged that the applicants have not co-operated with the investigation. As the applicants have been protected since December 2022 and the sustainability of allegation of wrongful availment of Input Tax credit in respect of a major component (Rs. 7.74 Crores) become debatable, at this length of time, no custodial interrogation of the applicants is warranted for further investigation. The applicants also appears to have roots in society. The possibility of fleeing away from justice appears to be remote - the order of interim bail made absolute - application disposed off.
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