Case Law Details
Rajesh and another Vs State of Haryana (Punjab and Haryana High Court)
The FIR in question was lodged at the instance of ASI Vinod Kumar wherein it has been alleged that on 4.6.2019 when he along with other police officials was present near grain market bridge for the purpose of patrolling, then a secret information was received to the effect that Rajesh Mittal, Inder Partap Singh and Manish make bogus firms and by transacting with bigger firms, they are getting huge amounts of money deposited in the account numbers of the said fake bogus firms so as to save GST and are thus causing huge loss to the State Exchequer on account of loss of revenue.
Pursuant to receipt of aforesaid information, the police swung into action and was able to apprehend the aforesaid accused Rajesh Mittal, Inder Pratap Singh and Manish.
During investigation, it further surfaced that the said 18 non-functional firms further issued bills in favour of 421 different industries based in Panipat and the said industries in Panipat in order to reflect expenditure in respect of their manufacturing processes and in order to lend credibility to their so called purchase of yarn made banking transactions in favour of said 18 firms and the amount so transferred through banking transactions used to be withdrawn from the bank accounts of the said firms and given back to those industries while retaining some percentage. Thus, in this manner, the industries of Panipat without actually incurring expenditure, used to reflect expenditure in their accounts and thus, also used to evade payment of a substantial amount of GST on the premises that the initial supplier i.e. M/s Lalit Trading Company had already charged the GST. The mastermind of this entire racket was found to be Rajesh Mittal who used the name of the firm M/s Lalit Trading Company for the issuance of bogus bills in favour of 18 firms created and registered by him with the help of some ordinary persons (non-businessmen) for the purpose of showing transactions and the said 18 firms further reflected transactions with 421 industries of Panipat. The loss of revenue in terms of GST was assessed at about 80 crores.
Held by High Court
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