Case Law Details
Naresh Mittal Vs. DGGST (Patiala High Court)
It appears from the facts that applicant alongwith Chhedi Lal Mittal created fake firms and availed fake ITC to the tune of Rs. 25 crore. Further it is brought to the fore that applicants firm could not have any business transactions with the firms he was transacting with as the businesses done by both were entirely different. Further these firms were engaged only for issuance of paper invoices without supply of any goods and accused in connivance of Chhedi Lal Mittal used to create fake bills of metals without actual supply of goods for passing of ineligible ITCs to various firms and was ultimate beneficiary of the amount passed through non existing firms to their firms. These facts taken in totality show that accused in a pre planned manner had created non existing firms to create invoices without actual supply of Goods for availing ineligible ITCs through them and through this he got illegally benefited to the tune of Rs. 25 crores in connivance with Chhedi Lai Mittal as such, this makes him ineligible for grant of bail at this stage because his release would certainly impact a fair investigation which is at a crucial stage at this juncture. The application is accordingly dismissed.
FULL TEXT OF THE HIGH COURT ORDER /JUDGEMENT
Proceedings conducted through video conferencing
It is submitted that applicant is dealing in sales and supply of rice and pulses since 2016 and during the course of the aforesaid business he started his proprietorship concerned named M/s Prag Enterprises formed for intra State sales and supply of unbranded rice acid pulses to various retailers and wholesalers. The firm is registered under GST Tax 2017 and as per Notification 2 of 2017 date 28,06.2017 issued by Central Government, no tax under GST is leviable on the supply of rice and pulses. The applicant has been regularly filing ‘Nil” GST returns which means that all outward and inward supply are Nil rated/exempted category. IT is submitted that applicant was never eligible for any t PC under IGST, CGST and SGST. It is submitted that respondent visited his office of M/s prag Enterprise and on the pretext of conducting search and thereafter he was arrested. It is submitted that conducting search and thereafter he was arrested, it is submitted that applicant was falsely implicated by the department and has been languishing In jail since 19411.2020.
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