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TMI Blog2019 (5) TMI 90X X X X Extracts X X X X X X X X Extracts X X X X ..... goods, which is punishable under Section 132 of the Central Goods and Services Tax Act, 2017 (hereinafter referred to as 'the Act'). 4. Anticipatory Bail has been sought on the ground that the petitioner apprehends arrest, based on the fact that on 19.03.2019 and even thereafter, a team of tax officers has visited the residence of the petitioner and told the family members at his house that they had come to arrest him. The company is a leading manufacturer of automotive cables and supplies cables to all top vehicle manufacturer including TATA Motors, Maruti Suzuki, Volkswagen, Mahindra, Ford, Honda, GM, Toyota, Nissan, Fiat etc. For manufacture of automotive cables, MCPL uses copper as raw material and purchase the same from third pa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... notice in writing identifying the extent of tax evasion alleged against them. -By order dated 27.03.2019 passed by the Pr. Commissioner, CGST Delhi West, its principal place of business at property bearing no. 69/2A, Najafgarh Road, New Delhi - 110015 was provisionally attached. The value of the said property, even by reasonable estimates, is upwards of Rs. 40 crore. Additionally, the department has also seized goods at the premises of MCPL valued in excess of Rs. 30 crore. That being the case, since the department is secure as regards the evaded tax, even if the case of the department is presumed to be correct, there is no need for arrest of the applicant, 6. It is further stated that the department had at the time of the raid, thre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ative stock of 53,19,378 Kgs of copper, and in such a situation how could applicant supply goods. He also submitted that Input Tax Credit can be taken if payment is made within ISO days and that he has made such payment to the firms through bank account. However, the department -has not told whether such firms have paid GST or not. He has also argued that it is not the duty of the applicant to verify from where the firms, from which MCPL is purchasing copper, are in turn purchasing the same. He further contended that admittedly the department does not want police custody of the applicant which entitles him to grant of bail. He has relied upon Siddharam Satlingappa Mhetre vs. State of Maharashtra & Ors., AIR 2011 SC 312 in this regard. He ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Overseas Pvt. Ltd. but also from several other such entities whose entire existence is for passing on Input Tax Credit of GST without actual supply of goods. The applicant through his company has availed such credit which was passed without actual supply of goods. 9. It is further submitted that the fact that all the transactions are GST paid, as Stated by the applicant is not correct as per the investigation. The main issue is purchase of fraudulent invoices from fictitious/non existent companies (which are under investigation) by M/s Malhotra Cables Pvt. Ltd. without actual supply/receipt of goods. Against these fraudulently obtained invoices, they avail Input Tax Credit of GST which is further used to set off their GST liability ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... prevent tampering of the evidence and influencing the witnesses because all firms in respect of which he has availed Input Tax Credit are under his direct or indirect control. The persons who have given statements regarding fake invoices are of lower strata and can be coerced and/ or influenced. He has relied upon P. V. Ramanna Reddy vs. Union of India, Minister of Finance, Department of Revenue (WP No. 4764 of 2019 decided by the Hon'ble High Court for the State of Telangana on 18.04.2019); wherein the Hon'ble High Court declined relief to the Petitioner who had challenged the summons issued under Section 70 of the Act and the invocation of the penal provisions under Section 69 of the Act. He has also referred to Bharat Raj Punj v ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nbsp; It is further alleged that some more firms have come to knowledge which have increased the amount of Input Tax Credit in access of Rs. 5 Cr. in addition to the aforesaid Input Tax Credit of Rs. 51.76 Cr. 13. The IO has shown, in the case file, statement of witnesses and other record regarding the non-supply of goods to MCPL and some of the firms/ entities being dummy/ non-extent, Issuance of invoices or bills without supply of goods can have wide ramifications. It is well settled that economic offences fall in a separate class and are to be viewed seriously, Admittedly, the applicant was earlier also involved in a similar case and despite the same he has allegedly again committed the offence. As per the IO there is a reas ..... X X X X Extracts X X X X X X X X Extracts X X X X
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