Case Law Details
Sanjay Dhingra Vs Director General of Goods and Services Tax Intelligence (Punjab and Haryana High Court)
Punjab HC refuses to grant Bail in the case where petitioner was alleged to create fake invoices in order to avail the benefits under Input Tax Credit (ITC).
FULL TEXT OF THE HIGH COURT ORDER / JUDGEMENT
The present petition is for grant of regular bail to the petitioner who was arrested on 07.10.2019 under Section 69 read with Section 132 of the Central Goods and Services Tax Act, 2017 (for short, ‘the Act’).
Briefly, the allegations against the petitioner are to the effect that he alongwith Gulshan Dhingra and others were involved in the business of generation and selling of fake tax invoices without supplying the goods through various firms/companies. These firms/companies were either under their control or were created by them in the name of their employees or known persons. The input tax credit has been availed by the said firms/ companies on the basis of fake invoices issued by various non-existent firms/companies. By generating and selling fake invoices, the accused have facilitated irregular availment and utilization of input tax credit by various entities leading to substantial and wrongful loss to the government revenue. Accordingly, the arrest of the petitioner was effected on 07.10.2019 on the allegation that by creating fake invoices, liability to the tune of Rs.127 crores has been created for the government.
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