Thursday, December 26, 2024
154,225FansLike
654,155FollowersFollow
0SubscribersSubscribe

Allahabad High Court rejects bail to four accused of wrongfully availing input tax credit

The Allahabad High Court has rejected bail to four persons accused of wrongfully availing input tax credit of about Rs 315 crores.

A Single Bench of Justice Nalin Kumar Srivastava passed this order while hearing a Criminal Misc Bail Application filed by Mukesh Kumar Jha and others.

These bail applications have been moved on behalf of the applicants Mukesh Kumar Jha, Amit Kumar Jha, Roshan Chaudhary and Vansh Pratap Singh with the prayer to release them on bail in Case under Sections 132(1)(b) and 132(1)(i) of C.G.S.T Act, 2017, Department D.G.G.I, Meerut Unit, Meerut.

The prosecution story is that during search at the office-cum-residence of applicant Mukesh Kumar Jha at RZ 1/82, 3rd Floor, Near Shakuntala Hospital, Vest Sagarpur, New Delhi several articles viz forged rubber stamp, cheque books, Aadhaar Card, PAN Card, Mobile Phones along with SIM cards etc were recovered.

Apart from the said articles, several electronic devices i.e laptop, external hard disk, mini CPU, pen drives and personal mobile phone of accused Mukesh Jha was also recovered and panchana dated 2.11.2023 was done in the premises itself.

On further enquiry, it was gathered that all the work at the said officecum-residence was being done on the direction of other persons, who have their office at Lal Dora Village, Hastsal, Uttam Nagar, Delhi. During visit to the said premises, applicants Amit Kumar Jha, Roshan Chaudhary and Vansh Pratap Singh were found present there and various incriminating documents including cheque books of various bank accounts, KYC (i.e PAN and Aadhaar Cards) of various persons were resumed through INS-02 dated 2.11.2023. The data retrieval of these devices revealed a list of 102 firms being operated by the syndicate consisting of the aforesaid accused persons.

Forensic examination also led to the retrieval of ledgers, invoices, e-way bills, bilties, etc of these bogus firms being maintained in BG Accounting software. WhatsApp chats retrieved from the mobile phones of the accused persons revealed numerous WhatsApp groups that were being used for works related to the demand and supply of fake GST bills. Apart from this, WhatsApp chat with Aangadiyas revealed RTGS transfers and subsequent sharing of currency notes as tokens for cash transactions.

In numerous chats the accused persons have shared the invoices, e-way bills, bank account details and currency notes to the middlemen/other persons of various fake firms. 102 fake firms have been unearthed till date which were created and managed by the syndicate.

The aforesaid firms were found non-operational at their registered place of business. Landowners of these premises informed that they have never rented-out their premises to any such firms. It reveals that the syndicate was issuing invoices from bogus GST firms. The applicants in their statements dated 2.11.2023, 3.11.2023 and 4.11.2023 confessed that they used to create and operate fake GST firms and issued fake GST invoices from these firms and they are involved in the passing of fake ITC from 102 non-existent firms to the tune of Rs. 274.89 Cr. by way of issuing invoices without any actual supply of goods.

It is submitted by the counsel for the applicants that the applicants are innocent and they have been falsely implicated in this case by the concerned department.

It is further submitted that while the applicants were looking for employment, they met Naveen Aggarwal, a chartered accountant, who offered them employment/ job and asked them to provide their Aadhaar Card, PAN Card and bank details etc. Since they were looking for a job for a long time, they gave all their documents to Naveen Aggarwal on the basis of which he cheated them and got many bank accounts opened.

It is also submitted that they have been shown to be indulged in unauthorized money transactions falsely. Though the applicants were not aware of said type of work, they used to work for the said Naveen Aggarwal for Rs 15,000/- each.

It is further submitted that neither the applicants own any firm nor have any connection with any firm. The said Naveen Aggrawal has misused the Aadhaar Cards, PAN Cards and other documents of the applicants and falsely implicated the applicants by forming forged firms on the basis of the said documents. They have not issued any fake bills / invoices. Applicants have not caused revenue loss to the exchequer and evaded payment of tax. They have been languishing in jail since 4.11.2023 and in case they are released on bail, they will not misuse the liberty of bail and will cooperate with the trial.

On the other hand, counsel appearing for the CGST department has submitted that the applicants run fake firms and issued fake bills / invoices and caused great revenue loss to the government exchequer. They are involved in passing fake ITC from 102 non-existent firms to the tune of Rs 274.89 Cr by way of issuing invoices only without any actual supply of goods. They are involved in illegal financial transactions causing huge loss of public money.

The Court observed that,

From the perusal of the record it reveals that when search was made upon the office-cum-residence of the applicant Mukesh Kumar Jha and other accused applicants Amit Kumar Jha, Roshan Chaudhary and Vansh Pratap Singh several objectionable items and incriminating evidence like forged rubber stamps, Aadhaar Cards, PAN Cards, Mobile Phones, cheque books relating to various bank accounts along with electronic devices i.e laptop, external hard disk, mini CPU, pen drives, KYC relating to various persons were retrieved. It was also revealed from the data retrieval of the devices that a number of 102 fake firms were running which were found non-operational at their registered places of business.

The accused applicants also confessed in their statements that they are involved in operating fake GST firms and they actually issued fake GST invoices from these firms, which were non-existent without any actual supply of goods or providing services.

It also reveals from the perusal of the record that by blaming Naveen Aggarwal the accused persons want to escape from liability whereas there is sufficient and ample evidence to the effect that they themselves were managing the affairs of illegal activities and fake ITC (Income Tax Credit) was availed by them and they were engaged in a number of illegal financial transactions and in such circumstances if they are granted bail, as rightly held by the Sessions Judge while rejecting their bail applications, there is a strong possibility of applicants fleeing from justice and also they may tamper with the crucial evidence or make influence to the witnesses.

“The Court is also of the view that the matter relates to serious economic offence, which may affect the economy of the country. The applicants have committed gross violation of the provisions of the GST Act. Wrongful availment / utilization of input tax credit amounting to Rs 315 Cr has been made by them and this amount will increase a lot with the advancement of the investigation. The Court genuinely feels that at this stage there is no possibility of false implication of the applicants. The maximum period of imprisonment provided for such offence under the GST Act, which is five years, causes no hindrance in rejection of bail applications in such types of cases relating to economic offences.

Hence, considering the entire facts and circumstances of the case and keeping in view the nature and gravity of offence, which is an economic offence in nature, complicity of accused, role of the applicants and without expressing any opinion on the merits of the case, the Court is of the view that the applicants have not made out a case for bail”, the Court further observed while rejecting the bail application.

spot_img

News Update