The Rajasthan High Court has granted bail to Gaurav Kakkar, the petitioner accused of creating fake firms for availment and passing of ineligiblie Input Tax Credit (ITC) and embezzling funds to a tune of Rs 19.65 crores.
The Single Bench of Justice MK Garg granted bail on a condition that the petitioner should always be present before the Court on every hearing.
The prosecution case against the petitioner is that he created fake firms for availment and passing of fake/ ineligiblie Input Tax Credit (ITC) to facilitate existing beneficiary firms. It is alleged that in total, ITC of Rs. 19.65 crores has been availed on the basis of invoices which is ineligible as per Section 16(2)(b) of the CGST Act, 2017.
The Counsel for the petitioner submitted that the petitioner has been falsely implicated in this case and the arrest has been made without determining the tax liability and by wrongfully calculating ITC allegedly availed by the present petitioner.
The Counsel also submitted that the present petitioner is no way involved in the commission of the offences alleged and that he has been arrested on frivolous grounds, in violation of the guidelines laid down in case of D.K. Basu vs. State of West Bengal.
The Counsel for the Respondent argued that that certain firms were created which were operating only on paper and were passing on inadmissible ITC by issuing invoices without supplying the goods mentioned therein and that the evidence collected so far clearly indicates that the accused is the mastermind in creating fake firms who subsequently defrauded the Government exchequer to the tune of Rs. 19.65 crores, therefore, the bail application may be rejected.
The Bench noted that “taking into consideration the investigation and evidence so collected, the trial will take considerable time and it may happen, if denied bail, the judicial custody be prolonged beyond the statutory period of punishment which is for five years.”
“Therefore, having regard to the totality of the facts and circumstances of the present case, without expressing any opinion on the merits of the case, I deem it just and proper to grant bail to the accused petitioner under Section 439 Cr.P.C with a condition to deposit Rs. 3 crores by the petitioner before the respondent Department under protest” the Court said.
Subscribe Taxscan Premium to view the JudgmentSupport our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates
