HC rejects bail application of assessee as investigation pending and GST fraud of huge amount involved

Case details: Ajaj Ahamad v. State of Odisha(CGST) - [2021] 131 taxmann.com 131 (Orissa)

Judiciary and Counsel Details

• • S.K. Panigrahi, J.
  • Sidhartha Sankar Ray for the Petitioner. , Adv. for the Petitioner.
  • S.K. Zafarulla, Addl. Standing Counsel for the Respondent.

Facts of the Case

The assessee was in custody for commission of offence under section 132(1)(b) and (c) and there was allegation that he was operating ten fake firms and had actively participated in passing of fake inputs tax credit to above firms without supply of goods. He submitted that he had been falsely implicated in the present case and there was no evidence against him and filed bail petition.

High Court Held

The Honorable High Court observed that while investigation has begun, more and more evidence is being unearthed. There have been instances where the petitioner has rendered inconsistent statements and therefore, securing his presence is essential so that he does not try to sabotage the investigation. The accused was active in creation and operation of the non-existent business entities for availing and passing of bogus ITC thereby defrauding the state exchequer. Therefore, considering the fact that huge amount of public money had been misappropriated by assessee and investigation of case was under progress, this bail application lacked merit and deserved to be rejected.

List of Cases Referred to

• • Nimmagadda Prasad v. CBI [2013] 7 SCC 466 (para 9)
  • Y.S. Jagan Mohan Reddy v. CBI [2013] 7 SCC 439 (para 9)
  • Adri Dharan Das v. State of W.B. [2005] 4 SCC 303 (para 10)