TMI Blog2022 (1) TMI 552X X X X Extracts X X X X X X X X Extracts X X X X ..... in question availed ineligible ITC and also made it available for other business entities by providing fake invoices and thus, passed on within and outside the State. The details of the documentation regarding the illicit transactions have been revealed during investigation. The conclusion which has been drawn by the investigating agency is entirely based on documents which are shown to have been seized during and in course of investigation. The fake business entities appear to have been identified. In other words, all the relevant materials which are required to subject the petitioner to prosecution can be said to have been collected during investigation. The petitioner happens to be a local inhabitant of Sambalpur. The firm is being run in the name of wife of the petitioner. Being a permanent resident of Sambalpur, the Court is of the view that there is a remote possibility of petitioner absconding or fleeing from justice. The petitioner is directed to be released on bail on furnishing a bail bond of ₹ 50,00.000/- with two solvent sureties for the like amount to the satisfaction of the learned court below in seisin over the matter with conditions - Application allowe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... filed from the side of the opposite party and it is contended that the petitioner found to be involved in availing ineligible ITC of ₹ 7.3 crore without receipt of any goods/services and furthermore, he was involved in issuing fake invoices to several firms to facilitate availment and utilization of ITC and above are the findings which are based on records and physical verification so carried out during the inspection by the CGST authorities. It is alleged that the investigation relates to multiple parties as availers of fake ITC passed on to other States as well and in the event, the petitioner is released on bail, he may tamper with the evidence. It is further alleged that since the petitioner is involved in defrauding the Government for a huge amount of ₹ 7.3 crore and having regard to the nature and magnitude of the crime, he should not be enlarged on bail especially when many more things are yet to be unearthed. 5. Learned counsel for the petitioner submits that the accused is alleged of having made irregular transactions by issuing sale bills without actual supply of the goods and in the process, tax credit was claimed without actual receipt of goods and tax l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... any goods/ services and that apart, he is also found to be involved in supply of fake invoices to several firms again without supply of goods or any services in order to facilitate them availment and utilization of ITC which are based on the admissions made, statement of the proprietor of M/s. Arshee Ventures and the quantification has been done on the basis of the GST returns filed and ITC ledgers submitted. It is reiterated that the investigation on multiple related parties, who are the availers of fake ITC apparently passed on to different parts of the State and outside and therefore, there is a risk involved, if the petitioner in the event of being released may tamper with evidence and abscond even and moreover, there are no adequate assets in the hands of the proprietor of the firm which can provisionally be attached so as to meet the Government revenue at stake. 7. It is pleaded that since CGST fraud involves huge amount whereby the petitioner subjected the Central Government exchequer to a substantial loss, plea of bail should not be liberally considered. It is claimed that offence being socio-economic in nature and affects society at large, no leniency should be shown in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g factors, such as,(i) the nature of accusation and severity of punishment in case of conviction and nature of materials relied upon by the prosecution;(ii) reasonable apprehension of tampering with evidence;(iii) possibility of securing the presence of accused at the time of trial or the likelihood of his abscondance etc. besides larger interest of the State and similar other considerations and as such, there is no hard and fast rule for grant or refusal of bail which always depends on the facts and circumstances of each particular case and in that regard, discretion has to be exercised judiciously and not in an arbitrary manner. In fact, in Kalyan Chandra Sarkar Vs. Rajesh Ranjan and another reported in (2004) 7SCC 528, the Supreme Court held and observed that though an exercise of detailed examination of evidence and elaborate documentation on the merits of the case is not to be undertaken, there is a need to indicate in such orders reasons for concluding why bail was being granted particularly where the accused is charged of having committed serious offence. From the side of the opposite party, learned Senior Standing Counsel appearing for them relied upon good number of citati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... identified. In other words, all the relevant materials which are required to subject the petitioner to prosecution can be said to have been collected during investigation. The petitioner happens to be a local inhabitant of Sambalpur. The firm is being run in the name of wife of the petitioner. Being a permanent resident of Sambalpur, the Court is of the view that there is a remote possibility of petitioner absconding or fleeing from justice. The extent of illegality in availing ITC in juxtaposition to the plea of the petitioner is in any case to be examined during and at the end of trial. The enquiry lasted for nearly two years ever since the business premises of the firm was searched and inspected by the Intelligence Wing of CGST. Since all the material evidence appears to have been gathered during investigation and considering the fact that final PR has, in the meantime, been submitted in the month of October, 2021 and taking into account the fact that the trial is unlikely to be accomplished in the near future and as the accused not being an outsider but a local of Sambalpur town, the Court is of the considered view that the petitioner, who has remained in judicial custody for n ..... X X X X Extracts X X X X X X X X Extracts X X X X
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