Case Law Details
CGST Vs. Sanyam Mittal (Patiala House Court)
On behalf of the department, It is submitted that accused availed fraudulent ITC of Rs. 12.82,05,579/- from various bogus firms and he accepted his fraud in his statement under section 70 of CGST Act on 06.03.2020 and also on 08.09.2020 where he confirmed that he purchased goodsless invoices from Tarun Verma only. It is submitted that summons dated 07.07.2020, 25.08.2020 and 08.09.2020 were issued to the applicant to provide certain document but he did not submit the record to the department and investigation of the beneficiaries of M/s Mittal Wire Company and M/s Bhuinika Metal LLP is still pending. Show cause notice will be issued after completion of investigation Also, accused submitted irrelevant documents to divert the investigation pretending to be bonafide person. None of the vendor / supplier firm of the accused is existent at this point of time and mere bank payment do not absolve the applicant from his liability and same cannot be construed as an evidence in his favour. The department could not examine him during the interim bail during Covid 19 and custody of the accused is required by the department to conclude the investigation in a fair manner.
In the given facts accused is in interim bail since 06.04.2020 and his custodial interrogation is required by the department for concluding the investigation. The department could not interrogate him post his release on interim bail due to Covid 19. the fact that accused has disobeyed the summons earlier and provided irrelevant material to the department indicate that he would jettison the ongoing investigation. Accordingly, in the interest of fair investigation. this Court is not inclined to grant bail to the accused at this stage. The application is dismissed. The accused is to surrender forthwith.
FULL TEXT OF THE HIGH COURT ORDER /JUDGEMENT
Reply filed on behalf of the department. Copy supplied.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
