Bail denied in Bogus GST Billing / Wrongful ITC Claim Case

Principal Commissioner of Central Tax Vs Supreet Singh Bakshi (Patiala House Courts)

In the case in hand, applicant / accused is stated to be the proprietor of M/s. Swift Enterprises, whereas, his father and brother are stated to be the Directors of M/s. Megabyte I.T. Pvt. Ltd. and his employee Rakesh Kumar Gupta is stated to be the proprietor of firm namely M/s. I.T. Solution. The applicant/ accused is stated to be managing entire affairs of all the three firms and IO has mentioned in his reply that by way of circular movement of invoices by way of fictitious sales without actual supply of goods, input tax credit (ITC) to the tune of more than Rs. 20 crores has been wrongfully availed by the applicant/ accused causing loss to the government exchequer. During arguments, Ld. Defence Counsel did not argue that any goods were actually supplied vide invoices vide which input tax credit has been claimed by the applicant / accused. The evidence has been collected by the I0 showing that various invoices were issued (inter-se) by the abovesaid three firms and all the said three firms are allegely being manged by the applicant / accused. Considering the totality of the facts and circumstances, nature of allegations and the initial stage of investigation, I am not inclined to grant bail to the applicant/ accused Supreet Singh Bakshi. Hence, bail application stands dismissed and disposed of.

Full Text of Order of Patiala House Court