Accused involved in availing bogus ITC of Rs 4.16 crore & passing on ITC of Rs 47.99 crore granted bail

The petitioner was arrested on 02.09.2021 for violating Section 132(1)(b),(c), and (l) of the OGST Act, 2017 by obtaining a false ITC from a firm M/s. S.S. Syndicate during the time period under consideration. As far as we can tell, the petitioner, as the owner of a fictitious company, received and passed on bogus ITCs without receiving or supplying products, based on fake invoices issued in the names of non-existent suppliers that could be discovered after a thorough examination.

The petitioner, in cooperation with other accused persons, was also involved in the operation of fictional firms, obtaining false ITC of Rs. 4.16 crore and passing on ITC for Rs. 47.99 crore, according to the accusation. During the investigation, the specifics of the claimed transactions’ documentation were discovered. The finding reached by the investigating agency is solely based on documents that were seized during and throughout the course of the investigation.

Without a doubt, the records on file imply that the petitioner and others were involved in operations in which false ITC was claimed on the basis of fake invoices without physical receipt and supply of products, and that this information was passed on to others. To put it another way, all of the materials needed to prosecute the petitioner were gathered in significant amounts during the investigation. The petitioner is a native of the city of Bhubaneswar. The Court believes that because the petitioner is a permanent resident of Bhubaneswar, there is a lower risk of his absconding or fleeing from justice. During and after the trial, the amount of illegality in obtaining ITC in contravention of the petitioner’s plea will undoubtedly be reviewed. Because reasonably sufficient material evidence appears to have been gathered, and in light of the length of detention and the fact that the alleged offences are punishable by up to five years in prison, and because the accused is a local of Balianta within the jurisdiction of Bhubaneswar, the Court is of the humble opinion that the petitioner, who has been in judicial custody for four months, should be released on bail.

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