The Patiala House Court has granted bail to the person accused of passing fake Input Tax Credit (ITC).
The applicant, Vikas Goyal is accused of taking fake ITC filed the application for bail.
The firm in which the applicant was the proprietor amount of ITC involved was loss than Rs.5 crores within the bailable limit. Accused was forced to give his statement. The applicant is the proprietor of Ms Unique Trade Links and had genuinely purchased materials from various firms Including Me Bost India Enterprise M/s Home Sai Traders, M/s General Enterprises, and Ms A to Z Enterprises, and made the payment through bank against the purchase from the firm.
After purchasing the materials from the firms, applicants sold the same to various firms and availed ITC. It is submitted that pursuant to his arrest, he has not been interrogated in JC which is making it clear that he is no more required for custodial interrogation.
It is submitted that nothing is to be recovered from the applicant. It is submitted that the allegation of the prosecution that the applicant is the mastermind of forming the bogus firms is wrong as said firms are different entities and are run by their respective proprietors. It is submitted that under GST Jaws vicarious liability cannot be undertaken as the tax of one taxable person cannot be recovered from another taxable person.
It is submitted that the applicant has been made a scapegoat and the prosecution have not deliberately arrested/ interrogated the proprietor of tour firms who are the mastermind of the present case and as per the department version, the four firms are bogus firms and their actual owner are not traceable and planted one and prosecution has left actual mastermind from being arrested.
The Chief Metropolitan Magistrate allowed the bail application on furnishing the bond of Rs.5 Lakhs with on surety subject to the conditions that he shall join the investigation or inquiry on summons or intimation issued by the investigating officer and shall not leave the country without the leave of the court.
Advocates R K wadhwa and Tariq Ahmed appeared for the petitioners.
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