Case Law Details

Case Name : DGGI Vs Abhit Manohar (Patiala House Court)
Appeal Number : F. No. IV(6)DGGI/RRU/ICU/09/2018-19
Date of Judgement/Order : 31/12/2020
Related Assessment Year :

DGGI Vs Abhit Manohar (Patiala House Court)

Applicant/accused is Masters in Business Administration. He is reported to be the sole proprietor of M/s Sri Siddhivinayak Ventures and reportedly raised taxable invoices to the tune of Rs.150 crores without any movement of goods. During the course of investigation, it was revealed that input tax credit of approximately Rs.7 crores has been fraudulently availed/passed by M/s Sri Siddhivinayak Ventures.

Considering the seriousness of allegations, enormity of charge and the fact that investigation is at crucial stage, I am not inclined to release the applicant/accused on bail. The application is bereft of any merits and the same is accordingly dismissed.

FULL TEXT OF THE HIGH COURT ORDER /JUDGEMENT

Present is an application moved on behalf of applicant/accused seeking grant of bail. It is submitted that applicant/accused is proprietor of M/s Siddhivinayak Venture having PAN No. ANEPM5162A being used by one of his close friend Deepak Mittal for clothing business who did not pay the requisite GST amount, got arrested and was later released on bail. It is submitted that applicant/accused has been falsely arrested in the present case and he has been languishing in j.c since 23.12.2020. It is submitted that applicant/accused is an MBA and has worked in various managerial positions and later on, he started doing business. It is submitted that applicant/accused is neither a supplier/purchaser nor a registered dealer under the GST Act nor he has rendered any service nor issued any invoice. It is submitted that investigation qua the applicant/accused is already complete and his custodial interrogation is not required in the present case. It is submitted that applicant/accused is ready to abide by any term or condition imposed by this court while granting him bail. It is submitted that father of applicant/accused has already expired and since then, his mother is suffering from multiple ailments. It is thus prayed that applicant/accused may be released on bail.

Ld. SPP has vehemently opposed the bail application arguing that applicant/accused is proprietor of the firm M/s Sri Siddhivinayak Venture and during the course of investigation, it was revealed that applicant/accused knowingly participated in receipt of only paper invoices to the tune of Rs.150 crores without any movement of goods and has fraudulently availed/passed input tax credit of approximately Rs. 7 crores to Government exchequer. Hence, he does not deserve to be released on bail.

I have heard and considered the rival submissions made by both the parties and also gone through the material available on record.

It has been observed by the Hon’ble Apex Court in State of Gujarat v. Mohan Lal Jitamalji Porwal & Ors (1987) 2 SCC 364 as under

“..The entire Community is aggrieved if the economic offenders who ruin the economy of the State are not brought to books. A murder may be committed in the heat of moment upon passions being aroused. An economic offence is committed with cool calculation and deliberate design with an eye on personal profit regardless of the consequence to the Community. A disregard for the interest of the Community can be manifested only at the cost of forfeiting the trust and faith of the Community in the system to administer justice in an even handed manner without fear of criticism from the quarters which view white collar crimes with a permissive eye unmindful of the damage done to the National Economy and National Interest…”

In the matter of Y. S. Jangan Mohan Reddy v. CBI (2013) 7 SCC 439, Hon’ble Apex Court has observed that:

“..15) Economic offences constitute a class apart and need to be visited with a different approach in the matter of bail. The economic offence having deep rooted conspiracies and involving huge loss of public funds needs 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.

16) While granting bail, the court has to keep in mind the nature of accusations, the nature of evidence in support thereof, the severity of the punishment which conviction will entail, the character of the accused, circumstances which are peculiar to the accused, reasonable possibility of securing the presence of the accused at the trial, reasonable apprehension of the witnesses being tampered with, the larger interests of the public/State and other similar considerations…”

Therefore, the economic offences are required to be treated as a separate class and bail cannot be granted as a matter of routine.

Applicant/accused is Masters in Business Administration. He is reported to be the sole proprietor of M/s Sri Siddhivinayak Ventures and reportedly raised taxable invoices to the tune of Rs.150 crores without any movement of goods. During the course of investigation, it was revealed that input tax credit of approximately Rs.7 crores has been fraudulently availed/passed by M/s Sri Siddhivinayak Ventures.

Considering the seriousness of allegations, enormity of charge and the fact that investigation is at crucial stage, I am not inclined to release the applicant/accused on bail. The application is bereft of any merits and the same is accordingly dismissed.

Application is disposed off accordingly.

Instant order be uploaded on the court website immediately.

Download Judgment/Order

More Under Goods and Services Tax

Leave a Comment

Your email address will not be published. Required fields are marked *

Search Posts by Date

May 2021
M T W T F S S
 12
3456789
10111213141516
17181920212223
24252627282930
31