Case Law Details
Rajnish Jain Vs Directorate General of GST Intelligence (Session Court, Meerut)
Introduction: The Sessions Judge in Meerut has rejected the bail application of Rajnish Jain, who is accused in a GST intelligence case involving fraudulent input tax credit and fake invoices. The judge considered the seriousness of the charges and the gravity of the offense as reasons for denying bail.
Analysis: The case revolves around M/s Sanraj Metals Pvt. Ltd., accused of availing and passing on ineligible input tax credit fraudulently without supplying goods or services. The prosecution claims that several non-existent or non-operational firms issued bogus invoices to M/s SMPL, enabling them to avail fake ITC of Rs. 79.12 Crore. The applicant, Rajnish Jain, is alleged to be associated with the financial operations of M/s SMPL. The prosecution argues that he was involved in receiving and issuing fake invoices, leading to a substantial amount of fraudulent ITC.
The defense argued that the applicant is not a registered person and is not directly connected with the day-to-day operations of M/s Sanraj Metals Pvt. Ltd. They contended that he is only involved in banking operations on behalf of his bedridden daughter, who is a sleeping partner in the company.
Conclusion: After analyzing the seriousness of the charges, the Sessions Judge decided not to grant bail to Rajnish Jain, citing the gravity of the offense involving substantial fraudulent ITC and multiple crime partners. The judge expressed concerns about tampering with evidence and influencing witnesses if the applicant were to be released on bail. The rejection of the bail application indicates the court’s intent to conduct a thorough investigation and trial in the GST intelligence case.
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