The Hon’ble High Court of Delhi vide its order dated 29th April 2022 in the matter of Amit Gupta Vs Directorate General of GST Intelligence Headquarters in W.P.(CRL) 1267/2021 held that the bail granted cannot be cancelled on a doubt that ITC utilized for depositing the amount as ordered by the Trial Court while granting bail, is fraudulent when the assessee is able to substantiate the same as legit and not fraudulent.
The Petitioner preferred the writ petition challenging the order dated 9th July 2021 passed by Ld. CMM, Patiala House Courts, whereby the bail granted to the petitioner vide order dated 23rd December 2019 was cancelled.
- The prosecution against the Petitioner is that he is one of the directors/key persons in M/s Brilliant Metals Pvt. Ltd., M/s. Progressive Alloys India Pvt. Ltd. and M/s JBN Impex Pvt. Ltd. and allegedly a mastermind in fraudulent availment of ITC amounting to Rs. 27.05 Crores on the strength of invoices pertaining to suppliers which were non-existing or fictitious. Further, the total ITC availed by the petitioner in the three companies mentioned above was totalling to ₹260 crores.
- That after the arrest, the petitioner was granted bail vide order dated 23rd December 2019 on furnishing a bond of Rs. 1 lakh with one surety of the like amount subject to conditions that ‘He will deposit the amount of Rs, 2,70,00,000 with the department, he will join the investigation with IO as and when required, he shall not temper evidence of influence witness, he shall appear before the court on every date of hearing and will not leave the country without prior permission of the court’
- That as required by the bail order, the petitioner deposited Rs. 1.10 crores through cash ledger and Rs. 1.60 crores through reversal from electronic credit ledger, which as per the department was availed through fraudulent means and was under doubt.
- It was held by the Ld. Trial Court that the Petitioner never took the permission of the Court to deposit the aforesaid amount through reversal of credit from electronic ledger and simply placed the challans before the Court. Consequently, the department filed an application for cancellation of bail on 24th January, 2020.
- That in the present matter the petitioner availed the ITC amounting to Rs. 260 crores, out of which ITC amounting to Rs. 27.05 Crores was disputed by the department and rest of ITC i.e., Rs. 232.95 Crores has not been disputed by the department, being availed by fraudulent means.
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