Shakib Qureshi Vs Anti Evasion CGST and 2 others (Allahabad High Court)
The Allahabad High Court granted bail to an accused booked under Sections 132(1)(b), 132(1)(c), 132(1)(e) and 132(1)(i) of the CGST Act, 2017 in a case involving alleged creation and operation of fake firms, fraudulent availment and passing on of input tax credit (ITC), and issuance of invoices without actual supply of goods or services.
According to the prosecution, a complaint was received alleging that M/s Sundar Trader had evaded GST of around Rs. 4-5 crores. Investigation revealed that the GST registration of one of its major suppliers, M/s Shri Ram Traders, had already been cancelled after being treated as a fake entity. A physical verification conducted on 26.12.2024 allegedly found M/s Sundar Trader to be non-existent. The department further analysed GST returns and identified several beneficiaries that had availed ITC on the basis of supplies from the said firm.
Inspection was also conducted at the premises of M/s Sunshine Steel, which was alleged to be a major beneficiary of ITC passed by M/s Sundar Trader. During the inspection, the premises were found locked, leading to provisional blocking of ITC amounting to Rs. 2.38 crore. The applicant later appeared pursuant to summons and his statement was recorded. The department alleged that the applicant’s mobile phone was switched off and attempts to trace him were unsuccessful. During searches, authorities claimed to have recovered stamps of other firms and handwritten records indicating “Bill Sale & Bill Purchase,” which, according to the prosecution, showed involvement in sale and purchase of fake bills.
