TMI Blog2023 (11) TMI 1052X X X X Extracts X X X X X X X X Extracts X X X X ..... MM/Ld. Link MM/Ld. Duty MM with the conditions imposed. Bail application disposed off. - (SUDHIR KUMAR SIROHI) BAIL ROSTER JUDGE ASJ/SPL. JUDGE, NDPS/N. DELHI Present: For the CGST : Mr. Aditya Singhla, Ld. SPP. For the Accused/Applicant : Mr. R. P. Singh and Mr. R. K. Ranjan, Ld. Counsels. Brief facts of the case are that during analysis of the Inward supply chain of one firm namely M/s. Star Scrap Trading Company (GSTIN-07HBFPM4269G1ZC), a proprietorship firm of one Muskan, registered at House No. C-260, Ground Floor, Ph-2, Mayapuri, New Delhi - 110064 from the E-waybill Portal, it was revealed that many of the L-2 suppliers of the said firm had 'NIL' inward supplies on the E-waybill portal, however they had made huge outward supplies. In the absence of in-ward supplies, the outward supplies made by these suppliers seemed suspicious. The details of the L-2 Suppliers M/s Star Scrap Trading Company (GSTIN-07HBFPM4269G1ZC) which are found to have-Nil- Inward supplies and huge outward supplies as per E-Way Bill Portal. Further, analysis of the records of M/s. Star Scrap Trading Company reveals that its L-1 suppliers were involved in avalling and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... availment and utilization of input tax credit and thereby causing huge loss to the government exchequer. In his statement he disclosed that he purchased goods from the local market through local agents without bill and arrange all the bills on percent basis from some of other local agents. He further disclosed that he purchased goods only from unregistered suppliers of local market and then the local agents provided the bills for the same from other fake firms. All of the ITC claimed by him, except for a maximum of Rs. 20000- 25000/- from banks etc, is fake and is from bills purchased by him on commission from the agents. He further admitted that he received invoices from local agents without supply of goods. The accused Iftikar Malik further in his voluntary statement dated 12.10.2023 admitted to having avalled ineligible ITC in total of 4 firms, and the amount of fraudulent ITC availed of these 4 firms as per the E-waybill Analytics Portal is Rs. Rs. 5,38,81,443/-. Sr. No. GST No. Legal Name Trae Name Total Tax Value (in Rs.) 1. 07HBFPM4 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tal, even filed GST in October 2023, therefore, it raises doubt on the case of CGST that the fake ITC were availed by the accused/applicant. It is further argued by the Ld. Counsel for accused that the accused is in custody since 13.10.2023 and investigation qua accused has already been completed, therefore, the accused is no more required for custodial interrogation and bail may be granted to accused. Ld. Counsel for accused relied upon the following judgments/orders: 1. Sidhivinyak Chemtech Pvt. Ltd. Vs. Principal Commissioner of CGST, Meerut (2023) 6 Centax 187 (Del.). 2. C. Pradeep V. Commissioner of CST and Central Excise Selam Special Leave to Appeal (crl.) No. 6834 of 2019 3. P. Chidambaram Vs. Directorate of Enforcement Criminal Appeal No. 1831/2019 by Hon ble Supreme Court of India on 04.12.2019 4. Arnesh Kumar Vs. State of Bihar and Another (2014) 8 Suprme Court cases 273 5. Akhil Krishan Maggu Vs. Deputy Dir., DG of GST Intelligence 2019 SCC OnLine P H 7785 Ld. SPP for CGST argued that applicant has availed the ITC of Rs. 5,38,81,443/- and during analysis of record of M/s Star Scrap Trading Company it was revealed that L1 sup ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ppa Mhetre (supra) as well keeping in mind Section 69 and 132 of CGST Act which empower Proper Officer to arrest a person who has committed any offence involving evasion of tax more than Rs. 5 Crore and prescribed maximum sentence of 5 years which falls within purview of Section 41A of Cr. P.C., we are of the opinion that power of arrest should not be exercised at the whims and caprices of any officer or for the sake of recovery or terrorising any businessman or create an atmosphere of fear, whereas it should be exercised in exceptional circumstances during investigation, which illustratively may be: (i) a person is involved in evasion of huge amount of tax and is having no permanent place of business, (ii) a person is not appearing inspite of repeated summons and is involved in huge amount of evasion of tax, 33 of 36 CWP No. 24195 of 2019(O M) (iii) a person is a habitual offender and he has been prosecuted or convicted on earlier occasion, (iv) a person is likely to flee from country, (v) a person is originator of fake invoices i.e. invoices without payment of tax, (vi) when direct documentary or otherwise concrete evidence is available on fi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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