Top Stories GST Evasion by claiming Unauthorised ITC of Rs. 63.37 Crores through Fake Bills: Chhattisgarh HC Grants Bail [Read Order] It was found that the evidences procure in the matter of Ishan Gupta and no incriminating has been recovered By Yogitha S. Yogesh – On November 27, 2024 3:29 pm – 3 mins read The Chhattisgarh High Court has granted bail to accused of passing unauthorised Input Tax Credit ( ITC ) worth Rs. 63.37 crores based on fake bills. It was found that the evidences procure in the matter of Ishan Gupta and no incriminating has been recovered. Badal Gour, the applicant has preferred First Bail Application under Section 483 of Bharatiya Nagarik Suraksha Sanhita, 2023 for grant of regular bail, as he has been arrested for the offence punishable under Sections 132(1)(B) and 132(1)(c) of the Central Goods and Services Tax Act, 2017. Complete Draft Replies of GST ITC Related Notices, Click Here

It was alleged that an intelligence was received that a person named Badal Gour i.e. present applicant was engaged and operative a web of 06 fake firms and he was the master mind in operating and managing this fake firms, on 31.07.2024 a summon was issued to applicant to tender oral evidence on which he gave his evidence on 05.08.2024 which was recorded under section 70 of CGST Act 2017. He was confronted with the statement of Rahul Bhatija, Pranjal Mishra Proprietor of Mishra Trading Company, Anil Agrawal Director of M/s Dadi Kripa Ispat & Power Limited, wherein he accepted that he was running 06 fake firms namely (a) M/s Jai Krishna Engineering, (b) M/s Mishra Trading Company, (c) M/s Shri Ram Enterprises, (d) M/s Shri Ram Traders, (e) M/s Agrawal Sales (f) M/s Agrawal Enterprises.

During the investigation the documents the credential of the proprietor the laptop having the tally data of 05 out of 06 fake firms were recovered and summon were issued to Vikram Mandhani Accountant and the present applicant to appear on 06.10.2024 and the statements were recorded and it was found that the present applicant was master mind and created 06 fake firms operated and managed the illegal activities done in the said firms he was indulged in availing fraudulent input tax credit of Rs. 29, 13,74,707/- from the non-existent tax payers without actual receipt of goods and have also passed on fake input tax credit to various customers without actual supply of goods on perusal of GSTR-1M of the 06 firms it was found that the applicant Badal Gour has passed on total input tax credit of 34,23,51,874/- without actual supply of goods with an intent to evade goods and service tax in total the applicant has done total tax evasion amounting to Rs. 63,37,26,581/-.

After the sanction accorded by the Commission CGST and Central Excise Raipur as provided under Section 132(6) of CGST Act 2017 and a complaint has been filed by the Superintendent Prosecution Cell. Complete Draft Replies of GST ITC Related Notices, Click Here Counsel for the applicant submitted that the applicant is innocent and he has been falsely implicated in this case. It was submitted that there is no evidence in the charge- sheet which implies any sought of active participation of the applicant  in the matter.  He  later  submitted  that  the charge-sheet/complaint has been filed and the applicant is in jail since 06.08.2024. Hence, he prays for grant of regular bail to the applicant. On the other hand, counsel for the respondent No. 1/UOI opposeed the bail application and submitted that from all the facts/evidences and the confessional statement of accused Badal Gaur, it is known that Badal Gaur has caused loss to the Government Exchequer be creating 06 non-existent firms and availing and passing on unauthorized input tax credit of Rs. 63,37,26,581/- on the basis of fake bills.

Therefore, he is not entitled to be released on bail. Considering the facts and circumstances of the case, it was found that the evidences procure in the matter of Ishan Gupta and no incriminating has been recovered at the instance of the present applicant and the applicant was not involved in any of the acts as alleged against him consciously or otherwise and the applicant is a transgender person, the applicant is languishing in jail since 06.08.2024 and the charge-sheet/complaint has been filed. Complete Draft Replies of GST ITC Related Notices, Click Here It was observed that he conclusion of the trial is likely to take some time, hence, without commenting anything on merits of the case, Chief Justice , Shri Ramesh Sinha granted regular bail to the applicant.