Bail granted in fraudulent availment of ITC as no incriminating material recovered

Badal Gour Vs Union of India (Chhattisgarh High Court)

Chhattisgarh High Court granted bail as no incriminating has been recovered at the instance of the present applicant in the matter of fake firm for availing fraudulent Input Tax Credit. Bail application allowed.

Facts- It is alleged that an intelligence was received that a person named Badal Gour i.e. present applicant was engaged and operative a web of 06 fake firms and he was the master mind in operating and managing this fake firms. On 31.07.2024 a summon was issued to applicant to tender oral evidence on which he gave his evidence on 05.08.2024 which was recorded U/s 70 of CGST Act 2017.

During the investigation, it was found that the present applicant was master mind and created 06 fake firms operated and managed the illegal activities done in the said firms he was indulged in availing fraudulent input tax credit of Rs. 29, 13,74,707/- from the non-existent tax payers without actual receipt of goods and have also passed on fake input tax credit to various customers without actual supply of goods on perusal of GSTR-1M of the 06 firms it was found that the applicant Badal Gour has passed on total input tax credit of 34,23,51,874/- without actual supply of goods with an intent to evade goods and service tax in total the applicant has done total tax evasion amounting to Rs. 63,37,26,581/-. After the sanction accorded by the Commission CGST and Central Excise Raipur as provided under Section 132(6) of CGST Act 2017 and a complaint has been filed by the Superintendent Prosecution Cell.