GST Evasion: Bombay HC refuses Anticipatory Bail to accused

Premprakash laxminarayan bansal Vs State of Maharashtra (Bombay High Court)

1. Apprehending arrest in connection with Crime No. 0178/2021 registered with APMC Police Station, Navi Mumbai for the offences punishable under Sections 420, 406 and Section 34 of the Indian Penal Code, the applicant seeks pre-arrest bail.

2. The subject crime was registered at the instance of one, Mahendra Pukhraj Parmar, owner of M/s. Esjaypee Mercantile Global Private Limited. This company is engaged in the trading of dry-fruits and spices on wholesale basis. Co-accused, Sarfaraz Jaliyawala, a broker in Agricultural Produce Marketing Committee (APMC) is known to the informant. In March, 2020, co-accused Sarfaraz introduced the applicant to the complainant and informed him that applicant requires, large quantities of cloves. Applicant is trading in spices under the name and style of M/s. Bansal Traders. Both Sarfaraz and applicant, allegedly agreed to make payments for the goods within few days after delivery. At the relevant time, complainant’s goods were stocked at, All India Storage and Warehousing situated at Navi Mumbai. The complainant sent an email to the Cold Storage and Warehousing on 2^nd March, 2020 asking the Warehouse Manager to transfer 100 bags of cloves worth Rs.22,90,842/- to applicant’s firm and vide another email dated 3^rd March, 2020 asked the Manager to transfer 200 bags of cloves worth Rs.51,30,777/- to applicant’s firm. Pursuant to the emails, Cold Storage and Warehousing service provider, transferred 300 bags of cloves in the name of applicant’s firm, M/s. Bansal Traders. On 4th March, 2020, 150 bags of cloves were delivered at Godown No.G-39 of Sarfaraz, spice market premises. On 5^th March, 2020, the second consignment of 150 bags of cloves were delivered to Sarfaraz at his godown. Soon thereafter, complainant has drawn the invoices. He filed the GST returns. Since the complainant did not receive the payment, notice was issued to the applicant and the co-accused, Sarfaraz and were called upon to make the payment. Applicant replied the notice through his Advocate stating that, he had not received the goods from the complainant. After which on a written complaint, crime in question came to be registered on 8^th May, 2021.

3. Mr. Desai, learned Counsel for the applicant, has denied the entire transaction and submitted that, applicant had never entered into transaction with the complainant, nor applicant availed Input Tax Credit. Mr. Desai, submitted that applicant has raised a grievance with the GST Officer thereby bringing to his notice, the fraudulent invoices were raised by the complainant. Mr. Desai invited my attention to a Certificate issued by M/s. Rahul Pramod & Co. Chartered Accountants, to submit that, M/s. Bansal Traders has not availed the credit of CGST and SGST in GSTR-9 of Financial Year 2019-20 filed on 5^thFebruary, 2021 from the available credits in GSTR-2A returns. Mr. Desai, submitted that, neither the delivery challans nor the invoices were ever acknowledged or received by the applicant and a false case has been filed against him. Mr. Desai, further submitted that, custodial interrogation of the applicant is not required since the prosecution is largely relying on the documentary evidence. It is submitted that, applicant is a permanent resident of Mumbai and his presence for investigation and trial can be secured by imposing appropriate conditions. On these grounds, the applicant seeks bail.

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