TMI Blog2021 (3) TMI 145X X X X Extracts X X X X X X X X Extracts X X X X ..... tention that there is no document on record connecting the accused with the alleged fake firms - HELD THAT:- The enquiry officer during the course of enquiry has collected bulky record which prima-facie supports the contentions of the complainant department regarding the role played by the accused in the commission of offence under consideration. Hence the contention in this regard raised by the accused/applicant is not sustainable at this stage. In the case of Y.S. JAGAN MOHAN REDDY VERSUS CENTRAL BUREAU OF INVESTIGATION [ 2013 (5) TMI 896 - SUPREME COURT ] it was held by the Hon ble Supreme Court of India that: the economic offences constitute a class apart and need to be visited with a different approach in the matter of bail. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dit (ITC). In furtherance of this, it has been contended that owing to merely involvement in issuance of invoices the offence made out against the accused, as per the allegations of the prosecution, are made out under Section 122 of the CGST Act and not under Section 132 of CGST Act. It has been further contended that no complaint or FIR against the applicant has been lodged till date and, therefore, his apprehension is not legal. The complainant department has not till date ascertained the tax liability of the applicant. No notice was ever issued to the applicant under section 74 of the CGST Act. Likewise, there is no document on record recovered so far which could connect the applicant with the alleged bogus firms. 3. Ld. Counsel appea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .19 Crores to the Government Exchequer. Since the amount of loss caused to the Government Exchequer is much above ₹ 5 Crores, the offences under consideration becomes cognizable and non-bailable. In support of his contentions, Ld. Counsel has referred to various judgments mentioned in reply to the bail application itself. He requests that bail application may kindly be dismissed as the investigation is still pending. 6. I have heard the Ld. Counsel for both the sides at length perused the record very carefully. 7. The perusal of the record clearly points out that the allegations against the present applicant/accused relate to his being involved in issuance of invoices without the actual movement of the goods as well as in wron ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y had indeed played any role in the commission of the offences under consideration, there are ample provisions under the law to bring them to justice. Simultaneously, it must be considered that the term bogus firms as such does not mean that they are actually not existent. It has been used in a sense that these firms though registered with the concerned authorities are indulging in the act of issuance invoices without the actual movement of goods. Therefore, it is a fact to be determined with the help of evidence as to whether the actual owners of these firms had played any role in the commission of offence or not? The court should, therefore, not comment on this aspect at this stage, lest it may adversely affect the course of investigation ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the financial health of the country . 12. In the recent case of P.V. Raman Reddy Vs. Union of India WP no. 4764 decided on 18.04.2019 = 2019 (4) TMI 1320 - TELANGANA AND ANDHRA PRADESH HIGH COURT the Hon ble Supreme Court of India regarding the economic offences under the GST has made the following observations: If, even before the GST regimes put on tracks, some one can exploit the law, without the actual purchase or sale of goods or hiring or rendering of services, projecting a huge turnover that remained only on paper, giving rise to a claim for input tax credit to the tune of about ₹ 225.0 crores, there is nothing wrong in the respondents thinking that persons involved should be arrested. Generally, in all other fisc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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