Rajasthan HC denied bail to mastermind who created 38 fake firms and availed input tax credit wrongfully

Case details: Abhishek Singhal v. Union of India - [2021] 129 taxmann.com 248 (Rajasthan)

Judiciary and Counsel Details

• • Inderjeet Singh, J.
  • Jatin Harjai for the Petitioner. 
  • Siddharth Ranka for the Respondent.

Facts of the Case

The petitioner is a Chartered Accountant and there was allegation against him for passing of input tax credit wrongfully to tune of Rs. 6.36 crores by creating 36 fake firms. The department submitted that he had failed to appear before the officials while notices were issued to him. Even after filing of complaint before Trial Court, he remained absconded for about one year. The petitioner submitted that he was falsely implicated in this matter and filed bail application before the High Court.

High Court Held

The Honorable High Court observed that firstly, the petitioner failed to appear before the Department while notices were issued to him, secondly, even after filing of complaint before the learned Trial court, he remained absconded for about one year and thirdly, the petitioner is a chartered accountant, who is master mind of the crime and he has created 38 fake firms and availed ITC wrongfully to the tune of Rs.6.36 crores. Therefore, considering the above reasons, it was held that the bail application filed on behalf of the petitioner deserved to be dismissed.

List of Cases Referred to

• • Hemant Kumar Singhal v. Union of India [2021] 124 taxmann.com 99 (Raj.) (para 3).