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TMI Blog2022 (5) TMI 129X X X X Extracts X X X X X X X X Extracts X X X X ..... s also sought quashing of the proceedings initiated by the respondent under Section 67/70 of Central Goods and Services Tax Act, 2017 (in short 'CGST') as also the release of the records seized from the various premises of the petitioner, however, during the course of arguments the petitioner pressed prayers (a), (b) and (c) in the present petition, that is, setting aside of order dated 9th July, 2021 cancelling the bail of the petitioner and restoring the order dated 23rd December, 2019 granting regular bail to the petitioner. 2. Briefly the case of the prosecution against the petitioner is that the petitioner is one of the Directors/key persons in M/s Brilliant Metals Pvt. Ltd., M/s. Progressive Alloys India Pvt. Ltd. and M/s JBN Impex P ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rores by reversal of the ITC as a condition of bail. 6. Learned Trial Court further held that the petitioner never took prior permission of the Court to deposit the amount of Rs.1.60 crores through reversal of credit from electronic ledger and merely placed the compliance by way of challans before the Court on 21st January, 2020 whereafter the respondent filed an application dated 24th January, 2020 seeking cancellation of bail of the petitioner. 7. Even as per the case of the respondent the investigation carried out till now reveals availment of fraudulent ITC worth Rs.27.05 crores and the total amount of ITCs availed by the petitioner is Rs.260 crores. Thus it is not the case of respondent that ITCs worth approximately Rs.232.95 crores ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... red person on account of- (a) integrated tax shall first be utilised towards payment of integrated tax and the amount remaining, if any, may be utilised towards the payment of central tax and State tax, or as the case may be, Union territory tax, in that order; (b) the central tax shall first be utilised towards payment of central tax and the amount remaining, if any, may be utilised towards the payment of integrated tax; (c) the State tax shall first be utilised towards payment of State tax and the amount remaining, if any, may be utilised towards payment of integrated tax: [Provided that the input tax credit on account of State tax shall be utilised towards payment of integrated tax only where the balance of the input tax credit o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oner or an officer authorised by him in this behalf, not below the rank of an Assistant Commissioner, having reasons to believe that credit of input tax available in the electronic credit ledger has been fraudulently availed or is ineligible in as much as:- a) the credit of input tax has been availed on the strength of tax invoices or debit notes or any other document prescribed under rule 36- (i) issued by a registered person who has been found nonexistent or not to be conducting any business from any place for which registration has been obtained; or (ii) without receipt of goods or services or both; or b) the credit of input tax has been availed on the strength of tax invoices or debit notes or any other document prescribed under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... efunded in accordance with the provisions of Section 54 of the GST Act. 13. Though before the learned CMM and in the reply, the case of the respondent is that the ITCs being fraudulent the same cannot be availed of, during the course of arguments, learned counsel for the respondent does not dispute that the payment of tax could be made from the electronic ledger under Section 49 (4) of the GST Act however, contends that since the learned Trial Court directed the petitioner to deposit the amount of Rs.2.70 crores, he could not have availed the amount of Rs.1.60 crores by debiting the ITCs. 14. As noted above, the petitioner has to his credit ITC worth Rs.260 crores and the investigation does not show that beyond approximately Rs.42 crores ..... X X X X Extracts X X X X X X X X Extracts X X X X
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