HC rejected bail application of tax consultant accused of generating fake invoices & huge tax evasion

Case Details: Sourav Bajoria v. Union of India - [2021] 133 taxmann.com 388 (Gauhati)

Judiciary and Counsel Details

• • Hitesh Kumar Sarma, J.
  • H.R.A. Choudhury, Sr. Counsel and S. Agarwal, Counsel for the Petitioner. 
  • S.C. Keyal, Standing Counsel for the Respondent.

Facts of the Case

The petitioner-Tax Consultant was in custody for over a month for commission of offence under section 132 of CGST Act, 2017. The search was conducted in the office of the Tax Consultant and incriminating documents, such as E-way bills, invoices were found. It came out from the materials so far collected that he was arranging fake invoices. The petitioner filed bail application and submitted that being a Tax Consultant, he has no individual role in the commission of the offence & he had done his duty as a Tax Consultant only on the basis of the materials given to him.

High Court Held

The Honorable High Court after considering the material placed of record observed that complaint alleged a huge economic offence and therefore, a thorough and detail investigation is essential. Further, the materials so far collected by the Investigating Agency in respect of manipulation of invoices etc., was clearly suggestive of his active involvement.

Considering the role of the petitioner in facilitating commission of the offence of huge tax evasion of Rs. 28,97,85,917/-, the enlargement of the petitioner on bail, at this stage, would likely to hamper the investigation and tamper evidence which may amount to compromising with the entire investigation of the case. Therefore, the bail application deserved to be rejected.

List of Cases Referred to

• • Y.S. Jagan Mohan Reddy v. Central Bureau of Investigation [2013] 7 SCC 439 (para 11).