Sourav Bajoria Vs Union of India (Gauhati High Court)
Sourav Bajoria (Petitioner) has filed a petition seeking bail in connection with GST Case No. CGST/DGGI/GST/1928/2021, under Section 132(5) of Central Goods and Service Act, 2017(the CGST Act).
The Petitioner was alleged of unjustly availing Input Tax Credit (ITC) on fake invoices and E-way bills alongside Mr. Amit Kumar (Co-accused). While seeking bail, the Petitioner contended that he has been in custody for a month, as on date, with effect from July 19, 2021 and therefore, his further custodial detention is absolutely not necessary in the interest of investigation of the case.
As opposed to the Petitioner, the Respondent Counsel argued that the Petitioner had unjustly availing Input Tax Credit (ITC) on fake invoices, E-way bills and he was in complete league and connivance with the Co-accused in commission of the alleged offence. The investigation so far carried out reveals that the Petitioner had collected fake invoices, from various firm and individuals.
At the perusal of all the facts and evidences, the Honorable Gauhati High Court opined that this complaint alleged a huge economic offence and therefore, a thorough and detail investigation is essential.
Further, the Court opined that; considering the materials so far collected by the Investigating Agency, the enlargement of the Petitioner on bail, at this stage, is likely to hamper the investigation and tamper evidence which may amount to compromising with the entire investigation of the case.
The Court has also took note of the fact that the investigation of the case, involves a huge number of documents to be examined at different levels and at different places necessitating reasonably sufficient time to the Investigating Agency.
FULL TEXT OF THE JUDGMENT/ORDER OF GAUHATI HIGH COURT
Heard Mr. HRA Choudhury, learned senior counsel assisted by Mr. S Agarwal, learned counsel for the petitioner. Also heard Mr. SC Keyal, learned Standing Counsel, GST.
[2] This is an application, filed under Section 439 of the Cr.PC. seeking bail of the accused-petitioner, namely, Shri Sourav Bajoria, in connection with GST Case No. CGST/DGGI/GST/1928/2021, under Section 132(5) of Central Goods and Service Act, 2017.
[3] Perused the record of the case produced before this Court.
[4] The facts leading to this complaint is that one Amit Kumar is involved in generation of invoices without actual supply of goods. He has been operating under the trade name, M/s Maruti Traders, bearing GSTIN No. 18AKGPK7676Q1Z4. He has been engaged in fraudulent practices of availing as well as passing on Input Tax Credit (ITC) accumulated through issuance of fake Goods and Service Tax (GST) invoices and corroborating the same through issuance of E-way bills without actual supply of goods. The declared principal place of business of M/s Maruti Traders 18AKGPK7676Q174, NH-37 Beltola, near Kamrup Weigh Bridge, Assam is vague and fictitious and does not exist.
However, during the search in the undeclared premises, Vision (an interior decoration hub) building Jayanagar, Tripura Road, Guwahati, a huge quantity of incriminating documents belonging to M/s Maruti Traders bearing GSTIN No. 18AKGPK7676Q1Z4 like E-way bills, invoices, kaccha cash exchange details, bank cheque books used for running the racket, etc were found. Thereafter, search at multiple places related to M/s Maruti Traders and said Amit Kumar led to further recovery and seizure of incriminating documents like E-way bills, invoices, kaccha cash exchange details, bank cheque books used for running the racket, etc. The present petitioner is the Tax Consultant of the aforesaid M/s Maruti Traders. While search was conducted in the office of the Tax Consultant, i.e., the present petitioner, incriminating documents, such as E-way bills, invoices were found. It has also come out during investigation that sale of coal in the name of M/s Maruti Traders is only on paper and similarly purchase of coal from places like Delhi, Gandhudham and Ludhiana, etc are also fake and no movement of stock of coal infact took place from Gujarat to Guwahati. It has also come out from the materials so far collected that he has been arranging fake invoices, acted as a connection with various clients of the M/s Maruti Traders of aforesaid Amit Kumar. He is found from the materials on record to have even managed/arranged fake invoices, bills, etc and prepared accounts of the M/s Maruti Traders on such false and fabricated documents.
[5] Mr. HRA Choudhury, learned senior counsel for the petitioner while praying for bail of the petitioner has submitted that the allegation against the present petitioner is that he had managed/collected the fake invoices and facilitated commission of the offence by the co-accused Amit Kumar. He has further submitted that the petitioner is a Tax Consultant and he has no individual role in the commission of the offence. According to him, the petitioner has done his duty as a Tax Consultant only on the basis of the materials given to him
[6] It has further been submitted by Mr. HRA Choudhury, learned senior counsel for the petitioner that the accused petitioner has been in custody for a month, as on date, w.e.f. 19.07.2021, and therefore, his further custodial detention is absolutely not necessary in the interest of investigation of the case.
[7] Keyal, learned Standing Counsel, CGST has objected to the prayer for bail with reference to the materials in the record to the effect, that the petitioner had collected from the concerned firms/individuals fake invoices, E-way bills, etc and he was in complete league and connivance with the co-accused Amit Kumar in commisison of the alleged offence. The investigation so far carried out reveals that the petitioner had collected fake invoices, etc from the following firm/individuals as indicated in the table below:-
