HC Grants Bail to Accused of Creating Fake Firms to Pass on Fraudulent ITC

Case Details: Amrinder Singh v. State of Punjab - [2023] 151 taxmann.com 51 (Punjab & Haryana)

Judiciary and Counsel Details

• • Jasjit Singh Bedi, J.
  • S.S. Grewal & Ms Prabhnoor Kaur Bains, Advs. for the Petitioner.
  • Kirat Singh Sidhu for the Respondent.

Facts of the Case

The petitioner was accused of colluding with few other people to make network of fake firm and evade tax and pass on fraudulent input tax credit. The department alleged that no tax had been paid for inward supply but goods were supplied through fake invoices to avail ITC and fake bank accounts have been made to withdraw cash by same persons. The petitioner filed petition for bail and argued that similarly situated co-accused had been granted bail.

High Court Held

The Honorable High Court noted that grant of bail is at the discretion of court with regard to facts of case. The Court can also grant bail before completion of investigation. In the instant case, a total of 63 prosecution witnesses were yet to be examined and investigation would take time.

The Court also noted that the co-accused of petitioner had been granted bail. Since, the maximum sentence in the present case that can be awarded is 5 years, so further incarceration of petitioner would not be required. Therefore, the Court granted regular bail and directed petitioner to surrender his passport before the Trial Court or furnish an affidavit in case he did not possess any passport.