DHARMESH KIRTIKUMAR SHAH Vs. UNION OF INDIA

JUDGEMENT

(1.) The applicant, presently in custody, has filed present bail application, under Sec. 439 of the Cr.P.C, in connection with File No. IV/PI-I/35/DeeCubes/2020-21 for the alleged offence punishable under Ss. 132(1)(b) and 132(1)(c) of the Central Goods and Service Tax, 2017 (for short 'Act').

(2.) The issue in the present case is with respect to availment of fraudulent credit. The Department in multiple cases found that invoices are prepared in order to create of transactions with respect to sale of goods and/or services. The respondent no.1 raided the premises of one Bharat Bhagwandas Soni on the basis of fake GST invoices issued by the Traders of Bullion and Diamond Products without supply of corresponding goods. During the search proceedings, it reveals that the present applicant Dharmesh Shah being a Director of M/s. Dee Cubes Pvt. Ltd and Proprietor of M/s. Gloriana Jewels having place of business at Ahmedabad, has availed ineligible ITC of Rs.7,80,80,991.00 from non-existing fake firms namely Vishnu Gold, Viram Jewelers, Neel Jewelers and Kabir Enterprise. The department noticed that the another firm of the applicant M/s. Gloriana Jewels has also availed ineligible ITC of Rs.1,52,30,495.00 from the aforesaid firms. In short, total ITC credit of Rs.9.33 crores on the strength of invoices issued by 4 non- existence firm without receiving the goods have availed illicit input tax credit and thereby, committed an offence under Sec. 132(1) (c) of the Act. The investigation further reveal that the input test ITC illegally passed by the applicant to other persons by issuing invoices without actual supply of goods, thereby, he had facilitated to such parties for wrongful availment of ITC, which is an offence under Sec. 132(1)(d) of the Act.

(3.) In the aforesaid facts, it is the case of respondent no.1 that the applicant has entered into a criminal conspiracy of well organized bogus billing syndicate to create fake purchases for his 2 firms, which resulted into monetary loss to the government exchequer to the tune of Rs.9.33 crores.