TMI Blog2021 (10) TMI 1305X X X X Extracts X X X X X X X X Extracts X X X X ..... TC in their GSTR-2A return which indicates that they had no inward supply and all the payment of GST had been made through ITC only, and accordingly panchnama dtd. 26/02/2021 was drawn and M/s. Ronak Traders passed on entire ITC of ₹ 10.36 crore to another firm namely M/s. S. K. Traders by showing entire supply to them. Therefore, search was conducted on 11/02/2021 at M/s. S. K. Traders premises also and the same was also found to be non-existing and panchnama dtd. 11/02/2021 was drawn. It is also the case of the prosecution that during the search the assessee was unable to produce any stock register / purchase invoices regarding said stock which is mandatory u/s 35 of CGST Act, 2017. Further, it appears from the affidavit of the p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1 and was produced before the Hon ble Addl. Chief Metropolitan Magistrate Court on 01/09/2021 and thereafter sent to the judicial custody. It is further submitted that the applicant accused is holding GST registration and he is engaged in trading business of ferrous scrap, iron and steel scrap under the firms named Alina Traders and Galaxy Traders. It is also submitted by the Ld. Adv. that applicant-accused is holding registration certificate under the law Value Added Tax Act w.e.f 13/12/2016 at the same premises; and the applicant migrated from VAT regime to GST regime u/s 139 of the CGST Act. He further argued that applicant-accused has nothing to do with the matter of fake invoices or wrongful availment of ITC and further passing of frau ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is also submitted that sale is not disputed and there is no evidence to support the same hence there is no nexus and under all these circumstances Ld. adv. has prayed to release the applicant on regular bail. 4. On the other side Ld. Adv. for the Directorate General of Goods and Services Tax Intelligence Mr. Sudhir Gupta has appeared and submitted that there is prima facie case against the present applicant-accused and he is involved in economic offence and present offence is grave and serious in nature. It is submitted that looking to the Affidavit of I.O. vide exh. 6 there is prima facie case and there is no transaction of goods and there is no existence of company as well as no statutory records are available. It is further submitted ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... GST had been made through ITC only, and accordingly panchnama dtd. 26/02/2021 was drawn and M/s. Ronak Traders passed on entire ITC of ₹ 10.36 crore to another firm namely M/s. S. K. Traders by showing entire supply to them. Therefore, search was conducted on 11/02/2021 at M/s. S. K. Traders premises also and the same was also found to be non-existing and panchnama dtd. 11/02/2021 was drawn. Furthermore, as per the prosecution case, M/s. S. K. Traders in turn, has passed on ITC of ₹ 10.29 crore to the two firms M/s Alina Traders (ITC of ₹ 8.18 Crore) and M/s Galaxy Traders (ITC of ₹ 2.11 Crore) both are the proprietary firm of Shri Mohsin Qureshi (present Applicant) and both are having principal place of business at ..... X X X X Extracts X X X X X X X X Extracts X X X X
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