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TMI Blog2025 (1) TMI 1024X X X X Extracts X X X X X X X X Extracts X X X X ..... bmitted that nothing is required to be recovered or discovered from the applicant and maximum punishment is upto 5 years as per section 132 of the CGST Act. Learned advocate for the applicant has further submitted that the applicant, a Director of M/s. Nandeshwari Steel Limited (hereinafter referred to as "the Company"), is involved in the manufacturing and clearing of SS ingots and SS round bars, falling under Chapter 72 of the Harmonized System of Nomenclature. The Company is registered with the Goods & Service Tax (GST) Department under GST Certificate No. 24AABCN3464B1ZY and regularly pays GST on the goods supplied from its factory. As per Section 16 of the Central Goods & Service Tax Act, 2017, the Company is eligible to claim Input Tax Credit (ITC) for the GST paid on the inputs received. In line with the provisions of the Act, the Company avails ITC after confirming from the GST portal that the suppliers have valid GST registrations and have filed necessary returns (GSTR-1 and GSTR- 3B), and the tax has been paid. The Company ensures that the invoices from the suppliers are genuine and that all payments for the goods and GST have been made correctly. The process is fully com ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fraudulently availed ITC of Rs. 7.77 crores, with a taxable value of Rs. 43.15 crores. Based on intelligence from the Principal Chief Commissioner, CGST & CEX, Ahmedabad Zone, an investigation confirmed that the company had fraudulently availed fake ITC of Rs. 9.89 crores from fraudulent invoices issued by non-existent suppliers, whose GST registrations were cancelled. Subsequently, further investigation revealed that the company had fraudulently availed a total of Rs. 58.50 crores in ITC from 66 such non-existent suppliers, resulting in a taxable value of Rs. 325.04 crores, for the period from 2017-18 to June 2024. The applicant, Shri Dhavalkumar Patel, Director of the company, admitted his involvement during interrogation and was arrested on 20th July 2024 under Section 69 of the CGST Act, 2017, for offences under Section 132(1)(c) of the Act. Despite multiple attempts, the applicant's bail applications were rejected, with the latest rejection on 23rd October 2024. A show cause notice was issued to the company and its directors, including the applicant, on 4th August 2024, under Section 74(1) of the CGST Act, 2017, for evading GST through fraudulent ITC. The investigation furth ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pplication be rejected. The department has verified that the accused persons have taken undue advantage and siphoned off the Input Tax Credit. No goods have been sold, and forged bills were prepared. Furthermore, no vehicles have passed through toll plazas, and no registration numbers are available. The applicant has actively participated in the alleged crime, and the other directors are on the run. They have duped the Government, causing a loss to the public exchequer. In such cases, the Court should not allow the application in favor of the applicant, and the present application may not be considered. Hence, the learned advocate has requested that the Court to dismiss the present application. If the discretion is exercised in favor of the applicant, it should be conditional upon the deposit of the entire amount of the alleged forged or scammed ITC. 6. While granting bail, the Court has to consider the involvement of the accused in the alleged offence, the jurisdiction to grant bail has to be exercised on the basis of the well settled principles having regard to the facts and circumstances of each case and the following factors are to be taken into consideration while consider ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... case and considering the nature of the allegations made against the applicant/s in the FIR, without discussing the evidence in detail, prima facie, this Court is of the opinion that this is a fit case to exercise the discretion and enlarge the applicant/s on successive regular bail. Hence, the present application is allowed. The applicant/s is/are ordered to be released on successive regular bail in connection with Arrest Memo CBIC - DIN- 20240764WU0000222BB1 dtd. 20/07/2024 (F.No. GEXCOM/AE/INV/GST/392/2022- DC (C.C. No.146143 of 2024 pending in the Court of Additional Chief Judicial Magistrate, Ahmedabad), executing a personal bond of Rs.25,000/- (Rupees Twenty-five Thousand only) with one surety of the like amount to the satisfaction of the trial Court and subject to the conditions that he shall; (a) not take undue advantage of liberty or misuse liberty; (b) not act in a manner injurious to the interest of the prosecution & shall not obstruct or hamper the police investigation and shall not to play mischief with the evidence collected or yet to be collected by the police; (c) surrender passport, if any, to the Trial Court within a week; (d) not leave the State of Gujara ..... X X X X Extracts X X X X X X X X Extracts X X X X
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