Case Law Details
Paritosh Kumar Singh Alias Diwakar Choudhary Vs Senior Intelligence Officer (Chhattisgarh High Court)
1. This is second application on behalf of applicants under Section 439 of Code of Criminal Procedure, 1973 for grant of regular bail as applicants are in custody since 25.1.2021 in connection with Crime/DDGI Case No.124/2020-21 registered in the office of the Directorate of GST Intelligence, GST, Raipur for commission of offence punishable under Section 132 (1) (b) (c) of the Goods and Services Tax Act, 2017 (henceforth ‘the GST Act’).
2. Case of non-applicant Department, in brief, is that based on GST Intelligence report, non-applicant started investigation, during course of investigation it revealed that M/s Manoj Enterprises, Raipur had never made any kind of purchase from any entity, it is non-existent firm at the registered address. It further revealed that applicants have formed forged firms in Chhattisgarh, Jharkhand, Madhya Pradesh, West Bengal and Maharashtra; availed illegal benefits of input tax credits and thereby caused loss of Rs.258 Crore approximately to the government ex-chequer during financial years 2018-19, 201920 & 2020-21. Applicants were arrested by non-applicant Department on 25.1.2021. After part investigation, complaint case was filed before the Court of Magistrate on 25.3.2021. Application for grant of bail filed by applicants before the Court below came to be rejected vide order dated 13.8.2021.
3. Mr. B.P. Sharma, learned counsel for applicants would submit that non-applicant/department has not placed any document along with complaint connecting applicants with alleged offence. Documents placed along with complaint are only procedural drafting with regard to preparing panchnama etc. and list of documents. There is no evidence to show involvement of applicants in taking benefit of illegal input tax credits. Applicants are in jail since 25.1.2021 and till date charges are not framed. There is delay in trial and therefore, this second bail application be allowed. In support of his contention, learned counsel relied upon decision of Hon’ble Supreme Court passed in Criminal Appeal Nos.164-165/2022 dated 1.2.2022.
4. On the other hand, Mr. Maneesh Sharma, learned counsel for non-applicant Department opposing submissions of learned counsel for applicants, would submit that allegations against applicants are that they created fake firms and caused loss of Rs.258 Crores approximately to the government ex-chequer during financial years 2018-19, 2019-20 & 2020-2021. First bail application of applicants was considered and rejected on merits vide order dated 18.1.2022, hence submission of learned counsel for applicants on merit that there is no substantial material against applicants, cannot be considered. Voluminous documents are filed before Court below showing prima facie involvement of applicants in commission of offence. Fake invoices are generated to beneficiaries, most of them are located in Maharashtra and the DDGI, Mumbai Zonal Unit has already initiated investigation against those firms. Applicant No.1 in his statement recorded under Section 70 of the GST Act, 2017 admitted to have availed input tax credits by issuing invoices. He submits that documents of the case, which is pending before Court below, are with him, which are in 3-4 bundles. He places his reliance on the order dated 17.4.2020 passed in SLP No.1803/2020, parties being Sandeep Goyal vs. Union of India [reported in (2012) 1 SCC 40].
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