Case Law Details
Basudev Mittal Vs Union of India (Chhattisgarh High Court)
It is alleged that the applicant has illegally availed Input Tax Credit of more than Rs.5,00,00,000/- by purchasing the goods from several suspicious and fake suppliers whose registration had already been cancelled. During search, it also came to the forefront that more than 700 vehicles, against which invoices were submitted by the applicant wherein only vehicle numbers were mentioned, have not found to be passed through the relevant toll gate. From the documents adduced, role of the applicant prima-facie appears to be serious in nature and as per the prosecution, further investigation is going on to find out more suspicious and fake suppliers with whom the applicant alleged to have made transactions in order to avail Input Tax Credit illegally. Further, looking to the nature and gravity of offence, the possibility of hampering with the evidence and interfering with the investigation by the applicant cannot be ruled out.
In the instant case, charge sheet has been filed against the applicant, however, further investigation is going on and as per respondent, there is much more probability of detecting more fake and suspicious firms. The economic offences having deep rooted conspiracies and involving huge loss of public funds need to be viewed seriously and considered as grave offences affecting the economy of the country as a whole and thereby posing serious threat to the financial health of the country. Economic offence is always committed with calculated design profiting himself regardless of the consequence to the community.
Considering the facts and circumstances of the case, the allegations made against the applicant, the evidence collected by the prosecution, seriousness of the offence and further considering the law laid down by Hon’ble Supreme Court in the matter of Nimmagadda , HC not inclined to release the applicant on bail.
FULL TEXT OF THE JUDGMENT/ORDER OF CHHATTISGARH HIGH COURT
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