Sanjeev Dixit Alias Vs Union of India (Allahabad High Court)
The Allahabad High Court has granted regular bail to Sanjeev Dixit alias Sanjeev Kumar, Rohit Mishra, and Viprendra Kumar Upadhyay alias Vikash, who were arrested in connection with a large-scale Goods and Services Tax (GST) fraud case. The three individuals, in custody since December 14, 2024, faced charges under various sections of the Central Goods and Services Tax (CGST) Act, 2017, related to the alleged creation and operation of fake firms for wrongful input tax credit (ITC) and issuance of fake invoices.
The Directorate General of GST Intelligence (DGGI), Kanpur, had filed a complaint alleging that Sanjeev Kumar Dixit was the mastermind behind a network of shell companies, including M/s Bharat Traders, M/s Shri Amarnath Enterprises, and M/s Gopal Enterprises. These firms were purportedly used to facilitate onward supply of iron scrap from unregistered suppliers to two firms in Punjab. Viprendra Kumar Upadhyay, an accountant, was accused of filing GST returns and managing fraudulent invoices and e-way bills under Sanjeev Kumar’s direction. Rohit Mishra, proprietor of M/s Shri Amarnath Enterprises, was identified as a “dummy proprietor” operating at Sanjeev Kumar’s behest.
Investigations by the DGGI included searches at the accused’s residences. While no incriminating documents were found at Sanjeev Kumar’s home initially, a subsequent search reportedly yielded rubber stamps of various firm proprietors, suggesting misuse for fraudulent transactions. At Viprendra Kumar Upadhyay’s residence, documents, records, and electronic devices were recovered, supporting his alleged role as an accountant actively involved in fraudulent GST activities. Statements recorded under Section 70 of the CGST Act from Viprendra and Sanjeev Kumar formed a significant part of the prosecution’s case, with Sanjeev Kumar allegedly admitting to managing the three firms with dummy proprietors receiving monthly salaries. The complaint claimed that these firms collectively availed fraudulent ITC of approximately Rs. 37 crores and passed on ITC worth around Rs. 50 crores.
