Case Law Details
Rajesh Jindal Vs Commissioner of Central Tax GST Delhi (West) (Delhi High Court)
Counsel for the respondent says that statements have been recorded inter alia of one Sh. Deepak Taneja and Sh. Ravinder Tyagi, both of whom have stated, giving specifics, that the petitioner has threatened them since they were made dummy directors by the petitioner in certain companies which were used to generate fake tax invoices in order to fraudulently pass on input tax credit, without actually supplying material. In response, learned counsel for the petitioner submits that the names of the firms/companies mentioned by the said Deepak Taneja nowhere appear in the list of companies/firms through which the petitioner is alleged to have indulged in tax evasion/ wrongful availment or passing of input tax credit. Such statements, which are part of the record of the investigation which is still underway, have also been shown to the Court.
Under Section 132(1)(i) in a case where the amount of tax evaded or input tax credit wrongly availed or utilized exceeds Rs.5 crores, the offence is punishable with imprisonment for a term which may extend to 5 years and with fine.
In any case, it is evident that the order cancelling the petitioner’s bail does not proceed on the basis of the quantum of tax evasion involved but on the basis that the petitioner has attempted to intimidate witnesses whom he had made dummy directors/proprietors in certain companies/firms.
In view of the above, this Court is of the opinion that there is no infirmity in order dated 22.12.2018 made by the Sessions Court cancelling the petitioner’s bail; and that, the petitioner having misused and abused the liberty granted to him, is not entitled to the benefit of bail, at this stage.
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