Case Law Details
Smit Dipen Shah Vs State of Gujarat (Gujarat High Court)
In the case of Smit Dipen Shah versus the State of Gujarat, the applicant, proprietor of M/s. Liberty Products, sought regular bail under Section 439 of the Code of Criminal Procedure. The application pertained to a GST Act violation regarding input tax credit.
The applicant’s defense centered on the legitimacy of transactions involving the purchase of goods. The defense argued that all transactions were duly supported by valid tax invoices and conducted through banking channels. Moreover, they emphasized the lack of incriminating evidence linking the applicant to the alleged offense.
Conversely, the prosecution contended that the applicant availed ineligible input tax credit amounting to Rs. 7.45 crores based on purchases from non-existing entities. They highlighted the substantial quantum of tax evasion and opposed the grant of bail.
The court considered the seriousness of the allegations and the applicant’s custody since the date of arrest. It also referred to relevant legal precedents, including the Supreme Court’s ruling in Sanjay Chandra v. Central Bureau of Investigation. After examining the facts and circumstances, the court exercised its discretion to grant bail to the applicant.
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