The bail application has been filed by an individual accused in Case (Crime) No. 2415 of 2021
under Section 132(1)(b)&(c), 132(1)(i) CGST Act, DGGI, Ghaziabad. The first one deals with
offenses related to availing and passing on ineligible input tax credit (ITC) fraudulently without
the actual supply of goods or services. While, the latter relates to offenses involving the
issuance of fake invoices. The accused faces charges under this section for his alleged role in
the issuance of bogus invoices.
The defence contends that the accused is not directly involved in the day-to-day operations
of M/s Sanraj Metals Pvt. Ltd. and is solely associated with the company for banking purposes.
They argue that the accused is not a registered person and should not be held responsible for
the company’s actions.
The prosecution, on the other hand, maintains that the accused played an active role in
running M/s Sanraj Metals Pvt. Ltd., utilizing it to avail and pass on fake ITC, involving a
significant sum of money. They emphasize that the gravity of the charges and the seriousness
of the offense should be considered when assessing bail.
The court carefully examines this evidence and the legal framework, taking into account both
the seriousness of the charges and the ongoing nature of the investigation. Given the
substantial amount of money involved and the potential risk of evidence tampering or witness
influence, the court decides not to grant bail to the accused.
Overall, the court’s decision is influenced by the gravity of the economic offenses involved
and the potential risk of tampering with the case’s evidence or witnesses.
| SW Point of View: From a legal perspective, in the case involving an individual accused of fraudulent activities related to input tax credit (ITC), it is evident that the interpretation and application of the CGST Act play a pivotal role support the decision. The circumstance that even those not formally designated as directors can face legal repercussions when actively involved in a company’s fraudulent activities underscores the seriousness with which economic offenses are treated. |
Aagam Jain, Associate- Indirect Tax, SW India
