Accused of ITC Fraud Who Had Co-operated in Investigation Should Be Released on Bail | HC

Case Details: Rakesh Kumar Gupta v. Union of India - [2023] 156 taxmann.com 129 (Madhya Pradesh)

Judiciary and Counsel Details

• • Smt. Sunita Yadav, J.
  • Ankur Mody, Adv. for the Applicant.
  • Praveen N. Surange, Adv. for the Respondent.

Facts of the Case

In the present case, the applicant who was accused of involved in illegally availing benefit of input tax credit filed bail application. It was contended by the applicant that the department did not need him for any interrogation as department had not moved any application for police remand neither it had expressed any apprehension of flight risk for applicant or any fear of tampering with evidence or influencing witnesses.

However, the department submitted that the applicant was involved in making fake invoices and selling grains to IT companies.

High Court Held

The Honorable high Court noted that the applicant had co-operated in investigation by making himself available as and when summons were issued against him and his statement was also recorded even in jail. Also, the department had not expressed any apprehension of flight risk for applicant or any fear of tampering with evidence or influencing witnesses. Therefore, the Court held that the applicant should be released on bail on furnishing personal bond and sureties with certain conditions.

List of Cases Referred to

• • State of Gujarat v. Choodamani Parmeshwaran Iyer [2023] 152 taxmann.com 522/2023 (76) G.S.T.L. 146/99 GST 253 (SC) (para 5).