TMI Blog2022 (7) TMI 1022X X X X Extracts X X X X X X X X Extracts X X X X ..... ted by the applicant wherein only vehicle numbers were mentioned, have not fount to be passed through the relevant toll gate. From the documents adduced, role of the applicant prima-facie appears to be serious in nature and as per the prosecution, further investigation is going on to find out more suspicious and fake suppliers with whom the applicant alleged to have made transactions in order to avail Input Tax Credit illegally. In the instant case, charge sheet has been filed against the applicant, however, further investigation is going on and as per respondent, there is much more probability of detecting more fake and suspicious firms. The economic offences having deep rooted conspiracies and involving huge loss of public funds need to be viewed seriously and considered as grave offences affecting the economy of the country as a whole and thereby posing serious threat to the financial health of the country. Economic offence is always committed with calculated design profiting himself regardless of the consequence to the community. Considering the facts and circumstances of the case, the allegations made against the applicant, the evidence collected by the prosecution, seri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he G.S.T. portal itself shows that the alleged transactions have been taken place when the firms' registration was not cancelled or withdrawn and the applicant with bonafide intention trade in F.O.R. method, received tax input credit with the firms and transferred to the purchaser of applicant's as per rule. Furthermore, the so called forged firms have paid the G.S.T., therefore, applicant was able to receive input tax credit. Learned counsel also submits that the charge-sheet has been filed and there is no evidence on record to demonstrate that applicant has prepared forged and fictitious firms to avail benefit of input tax credit illegally. It is next submitted that the respondent conducted search at the residential premises of the applicant without any prior inquiry, assessment and demand notice ignoring the documents produced by the applicant, the offence has been registered. It is further submitted that nothing suspicious has been seized from the possession of the applicant, which would show that the applicant created or managed forged and non-existed firms and fraudulently availed input tax credit. Further submission of learned senior counsel is that the alleged off ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dia Traders having GSTIN No. 21BMEPS3765D1Z7 21KHVPS8753N1Z1 respectively, issued by the DGGI, Bhubhneshwar and the Anti-evasion, CGST, Rourkela, were received by the respondent office for investigation in connection with passing on of wrong and irregular ITC by some Orissa based fake firms, in which they had identified two such fake firms, who had been found to have passed on wrong and irregular ITC to the applicant, a search was conducted at the residential premises of the applicant and some incriminating material/documents were recovered relating to purchases from several suspicious suppliers whose registration had already been cancelled. Learned counsel also submits that on being scrutinized the documents, it has been found that the applicant and suppliers who were prima-facie perceived as suspicious during the initial investigation that the applicant was routinely engaged in availment and passing on ITC on the basis of fake invoices issued by many more suspicious firms in addition to the two fictitious firms already identified as per the above Alert Circulars. It has also been found that during verification of toll data, more than 700 vehicles mentioned in invoices issued by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the matter of P.V. Ramana Reddy v. Union of India reported in 2019 SCC OnLine TS 2516, judgment of High Court of Calcutta in the matter of Arvind Kumar Munka v. Union of India reported in 2020 SCC OnLine Cal 531 and order of High Court of Punjab Haryana at Chandigarh dated 23.01.2020 passed in Criminal Misc.-M-50256/2019 (Sanjay Dhingra v. Director General of Goods and Services Tax Intelligence). 5. I have heard learned counsel for the parties, perused the case diary. 6. A bare perusal of case diary goes to show that initially on the basis of two Alert Letters C. No.IV(6)13/AE/RKL/2022/1056-A and F.No.DGGI/BbZU/INV/123/GST/2019/2539 issued by Assistant Commissioner (AE), Rourkela and Additional Director, DGGI, Bhubaneswar respectively, regarding sharing of information in case of non-existent business entity, the business premises of the applicant from where the business activities were being performed, searched out and upon scrutiny of document it is found that the applicant has illegally availed Input Tax Credit of more than Rs.5,00,00,000/- by purchasing the goods from several suspicious and fake suppliers whose registration had already been cancelled. Durin ..... X X X X Extracts X X X X X X X X Extracts X X X X
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