HC rejects bail application of petitioner accused of availing benefit of ITC without supply of goods and services

Case Details: Santosh Kumar Gupta v. Union of India - [2021] 128 taxmann.com 77 (Orissa)

Judiciary and Counsel Details

• • D. Dash, J.
  • Pranay Kumar Das,  Pattanaik and S. Mohanty, Advs. for the Petitioner
  • S. Mishra, Sr. Standing Counsel for the Respondent

Facts of the Case

The petitioner was arrested by GST authority on allegations that he had created about ten Firms and was generating fake bills, invoices in name of said Firms and facilitating availment of benefit of Input Tax Credit (ITC) without actually supply/ receipt of goods and services. He filed application under Section 439 of the Cr.P.C. for his release on bail.

High Court Held

The Honorable High Court observed that several documents relating to the business activities of the Firm with other concerned Firms have been collected during investigation and departmental officers strongly sensed something fishy and dubious going on in the matter touching the unwanted entitlement and availment of ITC. Such roles alleged to have been played by the Petitioner due to his sincere involvement in business and carrying out the same. Therefore, the court held that it is not inclined to accept the present move of the Petitioner for grant of bail as such dubious activities in committing offences for making huge unlawful gain by causing huge loss to the State Exchequer is a step towards not only scuttling the process of development in the country but also in standing as developed country in the globe in which our march is on.