Badal Gour Vs Union of India
Date: November 13, 2024
Subject Matter
Bail granted due to the absence of direct incriminating evidence against the assessee
Summary
The applicant, Badal Gour, sought regular bail after being arrested for operating six fake firms and engaging in fraudulent GST practices amounting to a total tax evasion of ₹63,37,26,581. The investigation revealed that the applicant was implicated in availing and passing on fraudulent input tax credits using these non-existent entities. Evidence was recorded, including confessional statements and documents linking the applicant to the creation of these firms. Despite the prosecution's claims, the defense argued that the applicant was falsely accused, lacking direct evidence of wrongdoing and asserting that the involvement stemmed from another individual, Ishan Gupta. The court, after reviewing the circumstances, granted bail primarily due to the absence of incriminating evidence directly against the applicant, the prolonged period in custody, and the ongoing nature of the trial.
FULL TEXT OF THE JUDGMENT/ORDER OF CHHATTISGARH HIGH COURT
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.45/FIC//GST/2024-25, registered at Police Station – Central GST and Central Excise Raipur, District- Raipur, (CG) for the offence punishable under Sections 132(1)(B) and 132(1)(c) of the Central Goods and Services Tax Act, 2017.
2. As per the story of the prosecution, it is 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 U/s 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.
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 CGST have intentionally suppressed that one another person, namely, Ishan Gupta is being prosecuted by the DGGI in respect of the same firms for which the CGST is prosecuting the present applicant in this case. It is pertinent to mention here that 05 out of 06 firms namely, (1) M/s Jai Krishna Engineering (GSTIN 22AOPPK7982L1Z7) (2) M/s Mishra Trading Company (GSTIN 22GJJPM3392H1Z0) (3) M/s Shri Ram Enterprises (GSTIN 22HCFPD1357D1Z6) (4) M/s Shri Ram Traders (GSTIN 22BSQPT8324R1ZQ) and (5) M/s Agrawal Sales (GSTIN 22EKCPA5562D1ZR). All having there respective different Proprietor’s for which there is allegation against the applicant for wrongful pass on of fake Input tax credit is made have been deliberately inherited by the complainant agency from the case against one Ishan Gupta just to increase the gravity of the offence alleged against the applicant. Further, one of the firms for namely Agrawal Enterprises (GSTIN 22BXRPA7494K1ZZ) whose proprietor is one Utkarsh Agrawal owes liability in respect of that firm and it is nowhere associated with present applicant. He further submits the present applicant has been enticed by Ishan Gupta and without he being aware of the fraud committed by Ishan Gupta in his name he has involved in the availing of Input Tax Credit and Tax Evasion. He also submits that there is no evidence in the charge-sheet which implies any sought of active participation of the applicant in the matter. He later submits 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.
4. On the other hand, learned counsel for the respondent No. 1/UOI opposes the bail application and submits 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.
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 on the basis of the complaint and 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, 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 – Badal Gour is allowed.
7. If the applicant – Badal Gour 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.45/FIC//GST/2024-25, registered at Police Station – Central GST nd Central Excise Raipur, District- Raipur, (CG) for the offence punishable under Sections 132(1)(B) and 132(1)(c) of the Central Goods and Services Tax Act, 2017. Order shall be in force till disposal of the case.