Seeking grant of Bail - wrongful availment of Input Tax Credit and fake invoices.

2022 (5) TMI 1182 - DISTRICT COURT GURUGRAM

Seeking grant of Bail - wrongful availment of Input Tax Credit (ITC) and fake invoices. 

Allegations were levelled against the applicant/accused that he issued fake invoices to the tune of Rs. 5.65 crore without the actual supply of goods and all this has been done by the applicant/accused in connivance with the other firms. 

There are nearly 56 firms, among whom fake invoices have been exchanged in regard to the amount of Rs. 5.65 crore despite the fact that goods had never been supplied through those invoices. 

On the basis of said fake invoices, taxes to the tune of Rs. 5.65 crore has been allegedly evaded by way of claiming the Income Tax Credit (ITC).

Considering the gravity and the nature of the allegations levelled against the applicant/accused and the fact that the investigation of the case is at a nascent stage and further considering the fact that now a days economic offences are rampant and should be dealt with due firmness as observed by Hon’ble Apex Court in Y.S. Jagan Mohan Reddy vs. Central Bureau of Investigation [2013 (5) TMI 896 - Supreme Court] wherein the Hon’ble Apex Court has observed that economic offences constitute a class apart and need to be visited with different approach in deciding the matter/s of bail. 

The economic offences have deep rooted conspiracies and involve huge loss of public funds, need to be viewed seriously and considered as grave offences affecting the economy of the country as a whole and thereby posing serious threat to the financial health of the country.

Held that the seriousness and nature of the offence allegedly committed by the applicant/accused, the Court is not inclined to grant concession of bail to applicant/accused Saurabh Srivastava. 

Accordingly his bail application stood dismissed.

Thus we see a renewed vigour in jurisprudence of economic laws, whereby the hon'ble courts are inclined to treat economic offences as one affecting the economy of the country as a whole and jeopardising the interests of the nation.

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2022 (5) TMI 1182 - DISTRICT COURT GURUGRAM