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2024:CGHC:42248
NAFR
HIGH COURT OF CHHATTISGARH AT BILASPUR
MCRC No. 6972 of 2024
Ishan Gupta S/o Niraj Gupta Aged About 29 Years R/o B-24, Romanesque Villa, Near Jain Mandir, Labhandih, Raipur, District - Raipur
(C.G.)
... Applicant versus
Union of India Through The Senior Intelligence Officer, Directorate General of G.S.T. Intelligence, Raipur, Zone Unit, 4th Floor, Rio Complex, Near Fruit Market, Lalpur, Dhamtari - Raipur, Raipur (C.G.)
... Non-Applicant
For Applicant : Mr. Shevendu Pandya, Advocate, as well as Mr. Sanskar Rajput, Advocate.
For Non-Applicant/UOI : Mr. A.S. Kuchwaha, Senior Advocate.
Hon'ble Shri Ramesh Sinha , Chief Justice Order on Board
24/10/2024
1. The applicant has preferred this First Bail Application under Section 483 of Bharatiya Nagarik Suraksha Sanhita, 2023 for grant of regular bail, as he has been arrested in connection with Crime No. DGGI 14/2023-24, registered at Police Station - Directorate General of Intelligence G.S.T., Raipur (C.G.) for the offence punishable under Sections 132(1)(b) and 132(1)(c) of CGGST Act,
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2017.
2. As per the story of the prosecution, The Directorate General of Goods and Services Tax Intelligence (DGGSTI) has alleged that Ishan Gupta was involved in creating fake firms and issuing fraudulent invoices under Section 132 of the CGST Act. It is claimed that these fake firms were established to inflate turnovers and claim wrongful Input Tax Credits (ITC) without any actual exchange of goods or services. The prosecution asserts that Ishan Gupta played a key role in this alleged tax evasion scheme, resulting in substantial revenue loss to the government. However, despite the serious allegations, the prosecution has not presented any substantive evidence directly linking Ishan Gupta to the creation or operation of these fake firms. No concrete investigation has been carried out against third-party entities alleged to have been involved, raising doubts about the thoroughness of the case. Furthermore, the charge-sheet appears incomplete and prematurely filed, without identifying the actual beneficiaries of the alleged fraudulent transactions. The prosecution has failed to demonstrate any recovery efforts made from other involved parties, further indicating that the investigation is still ongoing. This raises concerns that Ishan Gupta may have been falsely implicated in a politically motivated case, as there is no solid evidence or independent verification of his involvement in the fraudulent activities. The absence of complete information and the premature filing of the charge-sheet strongly suggest that the accusations against him are based on assumptions rather than facts. Hence, this application.
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3. Learned counsel for the applicant submits that the applicant is innocent and he has been falsely implicated in this case. He further submits that the GST Department has failed to investigate or seize the accounts of the actual beneficiaries in the down-chain, while the applicant's bank accounts were seized even before any summons were issued, additionally, the same tax liabilities are being sought from both the applicants and other entities, which is legally untenable under the CGGST Act, Section 132(c), as no end users or beneficiaries have been implicated, showing a clear failure of the investigative process. The applicant is in jail since 22.06.2024. Hence, he prays for grant of regular bail to the applicant.
4. On the other hand, learned counsel for the respondent opposes the bail application and submits that The Directorate General of Goods and Services Tax Intelligence (DGGSTI) has alleged that Ishan Gupta was involved in creating fake firms and issuing fraudulent invoices under Section 132 of the CGST Act. It is claimed that these fake firms were established to inflate turnovers and claim wrongful Input Tax Credits (ITC) without any actual exchange of goods or services. The prosecution asserts that Ishan Gupta played a key role in this alleged tax evasion scheme, resulting in substantial revenue loss to the government. Hence, he prays that the bail application be rejected.
5. I have heard learned counsel appearing for the parties and perused the case diary.
6. Considering the facts and circumstances of the case, the nature of the allegation levelled against the applicant, the fact that the GST
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Department has failed to investigate or seize the accounts of the actual beneficiaries in the down-chain, while the applicant's bank accounts were seized even before any summons were issued, additionally, the same tax liabilities are being sought from both the applicants and other entities, which is legally untenable under the CGGST Act, Section 132(c), as no end users or beneficiaries have been implicated, showing a clear failure of the investigative process, the applicant is languishing in jail since 22.06.2024 and the charge-sheet/complaint has been filed, the conclusion of the trial is likely to take some time, hence, without commenting anything on merits of the case, I am inclined to grant regular bail to the applicant. Accordingly, the bail application filed on behalf of Applicant - Ishan Gupta is allowed.
7. If the applicant - Ishan Gupta furnishes a personal bond in the sum of Rs.1,00,000 with one solvent surety to the satisfaction of the concerned Court, he be released on bail involved in Crime No. DGGI 14/2023-24, registered at Police Station - Directorate General of Intelligence G.S.T., Raipur (C.G.) for the offence punishable under Sections 132(1)(b) and 132(1)(c) of CGGST Act, 2017 . Order shall be in force till disposal of the case. - Sd/-
(Ramesh Sinha)
Chief Justice
Rajshekhar