TMI Blog2020 (9) TMI 426X X X X Extracts X X X X X X X X Extracts X X X X ..... ocess of law can withdraw the liberty that it has sanctioned to an individual when an individual becomes a danger to the societal order. A society expects responsibility and accountability from the member, and it desires that the citizens should obey the law, respecting it as a cherished social norm. Therefore, when an individual behaves in a disharmonious manner ushering in disorderly thing which the society disapproves, the legal consequences are bound to follow - Further discretionary jurisdiction of courts u/s 437 CrPC should be exercised carefully and cautiously by balancing the rights of the accused and interests of the society. In view of the allegations of creating fake firms and claiming such fraudulent input tax credit and routing them through various fake firms shows the propensity and wherewithal of accused in committing such crimes. I am satisfied if released on bail at this stage, the accused Amit Kumar Jain most likely will make an attempt to influence the proprietors / partners of the firms involved. The plea that accused has no previous criminal antecedents is humbly rejected as it may also point out that similar crime of accused if any, committed previously rem ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has been recorded by GST officers, accused Amit Kumar Jain deleted his Whatsapp chat and contact details with the malafide intention to remove / temper with the evidence which was available with his phone. He further submits that statement of accused u/s 17 of CGST Act wherein he admitted that he has passed on fraudulently availed input tax credit to his buyers by issuing goods-less GST invoices to his brother's firm M/s. Siddhartha Paper Company and M/s Satyam Paper Company and other firms, He further submits that investigation is at initial stage and accused Amit Kumar Jain needs to be kept in judicial custody and influence material witnesses and thereby hamper the ongoing investigation. There is a case of tax fraud of around ₹ 5.67 Crores and there is every likelihood that the said amount shall increase as and when investigation processes, As such, granting bail will serious seriously jeopardize the investigation and shall adversely impact the recovery of government dues. 4. Heard. Perused. 5. The object of pre trial detention of an accused is threefold, Firstly, accused could be detained in custody if some recovery of weapon/equipments used in the alleged cri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stinct breach of law. The basic rule is to release him on bail unless there arc circumstances suggesting the possibility of his fleeing from justice or thwarting the course of justice. 8. Apart from the question of prevention being the object of a refusal of bail, one must not lose sight of the fact that any imprisonment before conviction has a substantial punitive content and it would be improper for any court to refuse bail as mark of disapproval of former conduct whether the accused has been convicted for it or not or to refuse bail to an accused person for the purpose of giving him a taste of imprisonment as a lesson. While considering an application for bail either under Section 437 CrPC, it must be kept in mind that the principle that grant of bail is the rule and committal to jail an exception. Refusal of bail is a restriction on personal liberty of the individual guaranteed by Article 21 of the Constitution. Seriousness of the offence should not to be treated as the only ground for refusal of bail. (Judgment of Sanjay Chandra Vs. Central Bureau of Investigation, AIR 2012 SC 830 relied). 9. But, the liberty of an individual is not absolute. The Society by its collect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ny inexorable formula in the matter of granting bail. It was further held that facts and circumstances of each case will govern the exercise of judicial discretion in granting or refusing bail. It was further held that such question depends upon a variety of circumstances, cumulative effect of which must enter into the judicial verdict. Such judgment itself mentioned the nature and seriousness of nature, and circumstances in which offences are committed apart from character of evidence as some of the relevant factors in deciding whether to grant bail or not. 13. Allegedly accused Amit Kumar Jain used to generate good-less invoices as per the demand of various beneficiary companies of the market. Beneficiary companies used the amount against the good-less invoices in order to keep their record of financial transaction and to pretend the bogus transaction as real one. The same amount was rotated to two other companies before finally withdrawing cash from the bank. 14. Ld. counsel for accused has laid stress on the argument that accused is neither proprietor / partner in any of the firms nor has received the alleged amount of input tax credit in his account and therefore, he ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... odial interrogation of the accused. The unique modus operandi of accused for committing the crime at the first instance shows that the accused has taken advantage of the loopholes in the nascent GST regime and alleged to have committed huge loss to the exchequer by claiming fraudulent input tax credit. 18. The CGST Act, 2017 was enacted and came into force on 01.07.2017 and since than it has been seen that multiple cases of fake GST billing are reported. More often than not, such cases have modus operandi as alleged in the present case of creating fake firms and claiming fraudulent input tax credit, As per website of DGGI it has detected that tax fraud of ₹ 43990 Crore during FY 2019-20, this only shows the extent of loss caused to the government exchequer the unscrupulous elements. However, it is also noted that the DGGI has been lax in taking action against the fake companies and it apparently concludes their investigation by identifying the controller of such fake companies / firms, even when such fake entities are the major culprits in such fraudulent GST claims. Had DGGI acted upon such fake companies / firms, a message would have gone to such persons engaged in fra ..... X X X X Extracts X X X X X X X X Extracts X X X X
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