Case Law Details
Vishan Gupta Vs State of U.P. (Meerut District Court)
The applicant has been arrested and he has been explained the grounds of his arrest. The raid and search operation were conducted by the team of officers of Directorate General of GST intelligence on 25/05/2019 at the rented premises and during search some documents and Computer Processing Unit were resumed under panchnama and resumption memo dated 25052019 and during search no business activity was found in the premises and incriminating evidences recovered from the premises of the accused. During scrutiny it was found that the input Tax Credit of Rs. 159.20 Crores had been passed on through 47 Firms leading to wrongful availment or utilisation of input tax credit. Statement of accused was recorded on 25/05/2019, 26/05/2019, and 31/03/2019 under Section 70 of CGST Act 2017. All the 47 fake Firms have been verified physically and found that these firms were nonexistent. The copies of the panchnamas are placed opposite for perusal which clearly reflect that the firms were fake/nonexistent. On being pointed out that the activity performed by the applicant, the passing on fake GST credit of Rs. 159.20 Crores through the firms created by him without supply of any goods being a cognizable and non bailable offence. The accused vide letter dated 11062019 submitted certain documents which, on scrutiny, revealed that there were 31 more Firms which were admittedly created and controlled by the accused. The accused has violated provisions of the CGST Act 2017. It is also apparently clear that on account of issuance of GST invoices without supply of goods leading to fraudulent availment and utilization of input tax credit to the tune of Rs. 159.20 Crores. It is also evident from the arrest memo generated on line 04012021 having valid document identification number. In the instant case, the competent authority had followed the provisions of Section 69 and after going through the investigation report he had ordered for the arrest of the applicant. It is simply clear that the applicant was in full knowledge that the Firms for which he applied for registration were not suppliers in terms of Section 2 (105) of the Act. All guidelines were followed during the preparation of the arrest memo. The applicant was called in the office of DGG Ghaziabad and he was served upon the summons and his statement was recorded on the same day and the investigation report put up before the competent authority. The applicant is sole mastermind and responsible for every act of himself. Suffice to say primafacie, the accused has committed an economic offence and caused monetary loss to the State which is most harmful. There is a possibility to be tampered with the evidence and tempered with the witnesses if the applicant is released on bail.
Keeping in view the facts and circumstance of the case and the gravity and seriousness of the offence, without making any comment upon the merits of the case, I do not find it a fit case for bail. Hence, the bail application is liable to be rejected.
FULL TEXT OF THE JUDGMENT/ORDER OF MEERUT HIGH COURT
1. The present bail application has been moved by accused Vishan Gupta son of late Shri Jagdish Prasad Gupta resident of 5/184, Panja Madarsa, Patwari, Belanganj District Agra in case no. 101 of 2021 under Section 132(1) (b) 132 (1) (i) of the Central Goods and Services Tax Act, at Police Station Sahibabad, District Ghaziabad.
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