TMI Blog2021 (12) TMI 1263X X X X Extracts X X X X X X X X Extracts X X X X ..... ITC. The total amount of availment of ineligible ITC is more than ₹ 6 Crores. It may be noted here that respondent No.2 had inputs that Gautam Joshi has created fake entities, and the applicant Swara Jewels has paper transaction with the same entities. Respondent No. 2 has recorded the statement of Gautam Joshi where he admitted that he has created fake entities as Mumbadevi Jwellers and Arihant Traders. The statement of the applicant as recorded by respondent No.2 also reveals that the applicant has dealt with these entities i.e. Arihant Trading, M/s. Sandeep Traders, Gajmukhi and Mumbadevi Bullion in connection with Guatam Joshi. At this infant stage of investigaion, this much material is sufficient to make out prima facie case a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... whereupon the applicant attended the office of respondent No.2 and his statement came to be recorded and the applicant also furnished the copies of documents to respondent No.2. 3. Aggrieved by the said summons dated 28th June 2021, the applicant by present application requested for anticipatory bail contending that he has apprehension of arrest by respondent No.2 for offence u/Sec. 132 of The G.S.T.Act. Respondent No.2 resisted the application by filing say at Exhibit-2 contending that the applicant availed as well as passed on ineligible input tax credit from and to non existing firms. 4. The Ld. Advocate Shri Bhavesh Thakur on behalf of the applicant argued that there is no material showing that the applicant has committed any off ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the same object. The applicant has availed GST from such non existing firms namely Sandeep Trading , Arihant Traders , M/s. Golden Bullion', Gajmukhi Bullion and M/s. Mumbadevi Bullion . The applicant has availed input tax credit of about ₹ 20 Crores. Many other bogus companies/firms are involved in the same. Still investigation is in progress. The offence is serious and therefore, he requested to reject the bail application. 6. The Ld. Advocate Shri Bhavesh Thakur on behalf of the applicant relied on: i) Meghraj Burad v/s. Directorate General, Special Leave to Appeal (Crl.) No.244 of 2019, decided by Hon ble Supreme Court on 09.01.2019. ii) Nitin Varma v/s. State of U.P., 2021 [49] G.S.T.L.357. iii) K ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ccused absconding. v) Likely object of the accusation to humiliate or malign the reputation of the applicant. vi) Apprehension of causing destruction of evidence by the accused while the investigation is in progress. Each case has its own facts and circumstances and on the basis of the same, in the background of the settled principles of law entitlment of the bail has to be considered. 9. The relevant case laws material to the controversy are as follows. 10. In the case of Meghraj Burad the Hon ble Supreme Court granted interim protection to the accused therein in respect of offence under GST Act. 11. In the case of Nitin Varma the Allahabad High Court relied on the decision of Delhi High Court in the case of Make ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... anticipatory bail petition is maintainable for the offences under the CGST Act. In the case of Krishna Murari and Sunil Kumar Jha in the facts and circumstances of those cases, bail was granted. 17. In the case of P. V. Ramana Reddy , the Telangana High Court held that regarding arrest, section 69 uses the words reasons to believe and not reasons to be recorded and therefore it is enough if the reasons are found in the file, though not disclosed in the order authorizing the arrest. The argument that there cannot be an arrest before adjudication or assessment was also rejected. It is also observed that in fraudulent ITC claims, a huge liability is created for the government. Worth to note that decision of Telangana High Court ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... case of Daulat Mehta was relied upon by the petitioner therein praying for bail contending that in the almost similar circumstances the court had granted bail The Hon ble Bombay High Court in the case of Amit Shukla distinguished the case of Daulat Mehta . Considering the magnitude and the scale of the alleged fraud involving public money and the critical stage of investigation, the Hon'ble Bombay High Court in the case of Amit Shukla declined to grant the bail. 21. It is clear that it is not the law that in economic offences, bail cannot be granted. However, the exercise of discritionary power to grant bail in economic offences must not be casual. If there is no prima facie material against the accused, the court may consider ..... X X X X Extracts X X X X X X X X Extracts X X X X
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