Assessee involved in availing Fake ITC of Rs 7.3 crore released on bail

Assessee involved in availing Fake ITC of Rs 7.3 crore released on bail In the instant case, the petitioner was arrested on 05.08.2021 for an offense punishable under Section 132(1)(c) CGST Act, 2017 having availed fake ITC by the firm M/s. Arshee Ventures during the period from July 2017 to March 2019. The business premises of the firm was searched and inspected in the year 2018 by CGST Intelligence Wing and the petitioner’s statement was recorded and was further examined on couple of times once in the year 2019 and soon before his arrest in the month of August 2021 and in the meantime, final PR was submitted on 5th October 2021. The petitioner is claimed to be the authorized agent of M/s. Arshee Ventures with his wife as its proprietor. The allegation is to the effect that the firm in question availed ineligible ITC and also made it available for other business entities by providing fake invoices and thus, passed on within and outside the State. The details of the documentation regarding the illicit transactions have been revealed during the investigation. The conclusion which has been drawn by the investigating agency is entirely based on documents that are shown to have been seized during and in course of the investigation. No doubt, the materials on record prima facie suggest the involvement of the alleged firm in engaging itself in activities whereby bogus ITC was claimed on the strength of fake invoices without physical receipt and supply of goods. That apart, the investigation revealed availment of ineligible ITC of huge amount without receipt of any goods/ services. The fake business entities appear to have been identified. In other words, all the relevant materials which are required to subject the petitioner to prosecution can be said to have been collected during the investigation. The petitioner happens to be a local inhabitant of Sambalpur. The firm is being run in the name of wife of the petitioner. Being a permanent resident of Sambalpur, the Court is of the view that there is a remote possibility of petitioner absconding or fleeing from justice. The extent of illegality in availing ITC in juxtaposition to the plea of the petitioner is in any case to be examined during and at the end of trial. The enquiry lasted for nearly two years ever since the business premises of the firm was searched and inspected by the Intelligence Wing of CGST. Since all the material evidence appears to have been gathered during investigation and considering the fact that final PR has, in the meantime, been submitted in the month of October, 2021 and taking into account the fact that the trial is unlikely to be accomplished in the near future and as the accused not being an outsider but a local of Sambalpur town, the Court is of the considered view that the petitioner, who has remained in judicial custody for nearly five months, should be enlarged on bail with stringent conditions. The petitioner is directed to be released on bail on furnishing a bail bond of Rs.50,00.000/- with two solvent sureties for the like amount to the satisfaction of the learned court below in seisin over the matter with conditions, such as, he shall not induce, threat or terrorize any of the material witnesses, while on bail; shall not exert any kind of influence or pressure vis-à-vis the prosecution witnesses to be examined during the trial and thus, not to tamper with the collected evidence, in any manner whatsoever; shall not involve or indulge in any such similar kinds of nefarious activities, while on bail; shall surrender his passport, if he has any, before the learned court below and shall not leave the jurisdiction of the court without its prior permission. Click on the link given below to read the order: