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TMI Blog2023 (9) TMI 1126X X X X Extracts X X X X X X X X Extracts X X X X ..... ble under Section 132(1)(b) of the Gujarat Goods and Services Tax Act, 2017 (herein after referred to as 'the GST Act') and Central Goods and Services Tax Act, 2017 (hereinafter referred to as 'CGST Act'). 2. Brief facts leading to filing of the present application are that the State Tax officer-1, Unit-6, Ahmadabad gave a complaint vide File No. ACST/U-5/J K Traders/2021-22/ 0/W No.1 against the applicant accused wherein it is alleged that the applicant has wrongfully passed input tax credit on the beneficiaries from 66 bogus firms. It is further alleged that the applicant obtained KYC documents of poor, needy individual and relatives in lieu of money and based on such KYC documents and bank details, GST registration was obtained by fraud ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t Goods and Services Tax Act, 2017 against the applicant and ordered the applicant to appear in person on the same day 15.3.2023. It is pertinent to note that the summons does not mention the time at which the applicant was called upon to remain present. It is the case of the applicant that without waiting for the applicant to appear and produce necessary documentary evidence as per Section 70 of the Act, the State Tax Officer raided the residential premise of the applicant in the late midnight on 15.3.2023 and seized certain documents. The applicant was arrested at about 2:15 am on 16.3.2023. From the facts stated in the complaint as well as remand application, it is clear that the applicant has been arrested without following due procedur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... medabad was pleased to pass an order to register the said complaint and issue summons and accordingly, said complaint is registered as Criminal Complaint/Case No. 43571/2023. 4. It is the case of the applicant that since during the pendency of the Criminal Misc. Application No.3596 of 2023 aforesaid complaint came to be filed and since complaint case is registered and therefore, the said application was withdrawn with a liberty to file a fresh application and accordingly, same was withdrawn with the said liberty and after institution of aforesaid criminal complaint, the applicant approached the court of the learned Chief Metropolitan Magistrate, Ahmadabad by way of filing Criminal Misc. Application No.3700 of 2023 under Section 437 of Code ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s and conditions. 8. This Court has heard learned senior advocate Mr. N.D. Nanavaty assisted by learned advocate Mr.Ruchit Vyas for and on behalf of the applicant and Ms.Shruti Pathak, learned APP for the respondents - State and department. 9. Mr. N.D. Nanavati, learned Senior Counsel urged that: (i) That the allegations leveled against the applicant are false and frivolous and he has not at all availed and utilized the ITC as being alleged fraudulently. It is in this context, he submitted that the arrest of the applicant is being made against the guidelines issued by the finance department and considering the scheme and object of the Act, prosecution should normally be launched only after adjudication is completed. On factual aspect, i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ears that the respondent department failed to point out the facts that the further custody of the applicant is necessary. The entire case is based on documentary evidence and same are in the custody of the department. The record indicates that after filing the complaint still no show cause notice for determining the liability is issued by the department. In such circumstances, considering the observations made by the Apex Court in case of P. Chidambaram Vs. Directorate of Enforcement, (2020) 13 SCC 791, i.e. "even allegations of grave economic offence, it is not a rule that bail should be denied in every case and whether bail is granted or not, will have to be on the case to case basis of the facts involved therein and securing the presence ..... X X X X Extracts X X X X X X X X Extracts X X X X
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