Court grants Bail to Person Allegedly Introduced People to Main GST Accused for generating GST Numbers: Gujrat High Court
The Gujarat High Court, while considering a bail application by an accused involving a GST scam of Rs. 37.95 crore, has granted bail subject to deposition of Rs. 10 lakhs to the Government in six equal instalments. This is the case of BHARAT GORDHANDAS PATEL vs STATE OF GUJARAT lead by learned Justice Ilesh J.
FACTS OF THE CASE-
The petitioner, Mr. Bharat Gordhandas Patel, was detained in connection with a fraud uncovered during a search of the premises of scrap dealer M/s JK Traders. It was discovered during the search that M/s JK Traders’ administrator, Mr. A.A.Shah, had fraudulently claimed and benefited from input tax credit by showing phoney inward transactions and having created fictitious firms/companies; specifically, he had claimed illicit ITC of Rs.36.05 crore and passed it on to three other firms to the tune
of Rs.36.35 crore, and he had also conducted cash transactions without invoices, resulting in a loss
The petitioner claimed that this court had granted bail to the main accused, Mr. A.A.Shah, on the condition that he deposit Rs. 2 crore. Therefore, in light of the applicant’s supposed part in this, he is prepared to put up Rs.10 lacs (about $150,000) within six months of his release, without prejudicing his own rights or any potential counterclaims. Furthermore, it was argued that as a complaint had already been filed with the relevant court on 23 March 2022, the applicant’s continued detention was unnecessary.
After weighing all of the aforementioned evidence, Justice Ilesh J. Vora concluded that the petitioner was working for and on behalf of the primary accused, Mr. A. A. Shah, for a commission.
In a case involving a GST fraud totaling Rs. 37.95 crore, the Gujarat High Court granted bail to an accused individual on the condition that they pay Rs. 10 lakhs to the Government in six equal instalments.
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Judgement reviewed by Deepa Bajaj