GST: Delhi HC granted Anticipatory Bail to the person accused of Fraudulently availing and passing on fake ITC worth Rs. 72 Cr

M/S Jetibai Grandsons Services India Pvt. Ltd (hereinafter referred to as “Corporation”), a company incorporated in August 2019, has the petitioner as a director. Initially, the company provided services, but it later began producing and distributing solar inverters, solar power generating units, and similar products.

The respondent claims that the petitioner’s company, as well as other companies such as M/s Microlyte Energy (P) Limited, M/s Sun Automation Limited, M/s Urja Global Limited, and M/s NYX Industry India (P) Ltd., are involved in fraudulently obtaining and passing on ineligible/fake Input Tax Credit worth Rs. 72 cr/-. (Rupees Seventy Two Crores).

According to the respondent, the Company purchased the majority of its goods from three companies: M/s Microlyte Energy (P) Limited, M/s Sun Automation Limited, and M/s Urja Global Limited. It is also claimed that these three companies obtained these commodities from a variety of companies, the majority of which were discovered to be non-existent at their official addresses and to have no inbound supply. The respondent claims that these companies took advantage of an invalid Input Tax Credit of Rs. 72 cr/- (Rupees Seventy-Two Crores) and fraudulently transferred it on to the Company in a five-month period between November 2020 and March 2021.

Several summonses were issued to the petitioner based on the respondent’s aforesaid interpretation, requiring him to give evidence and record his statement. The first of them was issued on July 21, 2021, directing the petitioner to appear before the department for the aforementioned reason on July 26, 2021. The petitioner claims that he was unable to attend owing to his mother’s illness, and that he was afterwards refused due to his medical condition.

Following that, the petitioner filed an Anticipatory Bail plea with the Court of Additional Sessions Judge, Patiala House Court, New Delhi. The application was denied by the Additional Sessions Judge in a judgement dated October 9, 2021. The instant pleas have been filed with the Delhi High Court by those who are aggrieved by the stated ruling and seeking anticipatory bail.

Delhi High Court allows the instant application. In the event of arrest, the petitioner be released on bail on his furnishing a personal bond in the sum of Rs. 5,00,000/-(Rupees Five Lakhs only) with two solvent sureties of like amount to the satisfaction of the Investigating Officer/Apprehending Authority with the terms and conditions as follows:

i. he must surrender his passport to the Investigating Officer/Apprehending Authority and not leave India without the Investigating Officer/Apprehending Authority’s prior permission, and if he does not have a passport, he must file an affidavit to that effect with the Investigating Officer/Apprehending Authority;

ii. He must cooperate with the inquiry and appear before the Investigating Officer/Apprehending Authority as soon as possible;

iii. he shall not make any incentive, threat, or promise to anyone who is familiar with the facts of the case, directly or indirectly;

iv. he must submit his cell phone number and ensure that it is active at all times;

v. he must enter a PIN on Google Maps in order for the Investigating Officer/Apprehending Authority to know where he is; and

vi. During the time he is out on bond, he must not commit any crimes.

If breach of any of the above conditions is committed, it would be open to the Investigating Officer/Apprehending Authority to file an appropriate application for cancellation of the Anticipatory Bail granted.

Judgement can be Downloaded from below link.