TMI Blog2022 (1) TMI 700X X X X Extracts X X X X X X X X Extracts X X X X ..... ce under Section 132 OGST Act is concerned, it is in relation to GST fraud alleged to be for an amount of ₹ 319.64 crore, wherein, the petitioner is said to be involved by creating and operating fictitious business entities in the names of persons having no means. As a consequence, bogus ITC was availed by the business establishment for whom he worked as a Chartered Accountant with the allegation of joint liability. Whether, it is a case of petitioner facilitating the bogus ITC being availed is to be dealt with and adjudicated upon during and in course of trial. The GST authorities have managed to find out the alleged fraud being perpetrated towards availing fake ITC by creating bogus business entities and it appears to be an act w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... terms and conditions, as deemed just and proper, in the fact and circumstances of the case. 2. The petitioner is a Chartered Accountant and is alleged of utilizing and passing bogus ITC of ₹ 3,19,64,16,609.16/- that included claim and availment of bogus ITC on the basis of fake invoices by creating and operating 13 fictitious firms. It is made to reveal from the record that on the basis of a confidential information and investigation concluded by the Deputy Commissioner of Sales Tax and Enforcement Unit, Sambalpur, report was submitted against the petitioner for having committed offences under Sections 132(1)(b),(c) (l) of the OGST Act which was registered as P.R. No.01 of 2021-22 corresponding to 2(C) CC Case No.275 of 2021. 3. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... estigation report submitted by the CT and GST Enforcement Unit, Sambalpur. The petitioner contends that he is neither a registered dealer nor duly authorized under the OGST Act as a registered person but was only engaged in registration of the firms and therefore, nowhere remotely associated with the business conducted by the firms, inasmuch as, as a licensed Chartered Accountant has only rendered professional service vis- -vis registration of the alleged firms. 5. Learned counsel for the opposite party State contends that the petitioner though a Chartered Accountant was well aware of the procedural aspects but then never obtained proper authorization from the so called 13 fictitious business entities, while obtaining registration, filin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n availing and passing on of ITC and being a Chartered Accountant has not committed or caused to commit or retained any benefit or issued or received any invoice or goods and that apart, Section 132(1) and other relevant provisions of the OGST Act could not have been attracted for the period in question as it had come into force on and from 01.01.2021 and while contending so, the learned Senior counsel relied upon number of orders of this Court and other High Courts and claimed that the petitioner, who is merely a Chartered Accountant should be enlarged on bail with any conditions as the settled principle of law is that pending enquiry and trial unnecessary incarceration should be avoided unless and until it is justified. 7. In P.Chida ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ess entities operational in order to facilitate availing bogus ITC. As per the materials on record, the petitioner allegedly obtained GST registration vis- -vis the fake business concerns in collusion with other accused persons by utilizing and forging the personal identity documents of the so called proprietors. The nature and extent of involvement of the petitioner with regard to the alleged transactions is clearly evident and figured out from the materials on record. In so far as the offence under Section 132 OGST Act is concerned, it is in relation to GST fraud alleged to be for an amount of ₹ 319.64 crore, wherein, the petitioner is said to be involved by creating and operating fictitious business entities in the names of persons ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... inclined to release the petitioner on bail subject, however, to stringent conditions as stipulated herein below. 9. Accordingly, it is ordered. 10. In the result, application under Section 439 Cr.P.C. stands allowed. As a consequence, the petitioner is directed to be released on bail on furnishing a bail bond of ₹ 50,00.000/-(rupees fifty lac) with two solvent sureties for the like amount to the satisfaction of the learned court below in seisin over the matter with conditions, such as, he shall not induce, threat or terrorize any of the material witnesses, while on bail; shall not exercise any kind of influence or pressure vis- -vis the prosecution witnesses to be examined during the trial and thus, not to tamper with the collec ..... X X X X Extracts X X X X X X X X Extracts X X X X
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