ASIFALI FARUKBHAI FARUKI Vs. STATE OF GUJARAT

JUDGEMENT

(1.) Heard Mr. Chetan Pandya, learned advocate, for the applicant and Mr. Mitesh Amin, learned Public Prosecutor, for the respondent-State.

(2.) This successive application is filed under section 439 of the Code of Criminal Procedure, 1973 for regular bail in connection with F.I.R. registered at C.R. No. I - 18/2017 with Navrangpura Police Station, Ahmedabad for the offences punishable under Sections 177, 406, 409, 419, 420, 465, 468, 471, 474, 477(A) and 120B of the IPC, under sections 66(C) and 66(D) of the Information Technology Act, 2000 and under Sections 85(1)(b)(c)(e)(f), 85(2)(j) and 85(4) of Gujarat Value Added Tax Act, 2003.

(3.) It is briefly stated that written information was given by an officer of the VAT Department that at Amirgadh Check Post vehicle were stopped on 25.01.2017 and it was found that the consignor of the goods was National Industries of Ahmedabad, however, earlier in VAT Officer's investigation, it was found that the merchant is bogus and the owner of the firm is Shri Dineshbhai L. Kashyap. It is further alleged that it had come to the knowledge that by using TIN number of M/s. National Industries, tax evasion was done by bogus billing and even though the tax was not paid, it was shown that the tax has been paid and thereby false tax credit was taken and further bills were issued to other merchants and goods were being transported out of Gujarat without payment of VAT and credit is being given to some other merchant and that false invoices were prepared and same were uploaded on the website of the department and upon inquiry it was found that various forms were uploaded on the department's website from the IP address of U Board Bend hired by Shri Dinesh Kashyap, where on further inquiry, a board of Express Newspaper was found, however, at present no such newspaper is being published and therefore, it is presumed that the said place was being used for fake billing and that the applicant and other employees were present, whereas the broad bend internet connection was in the name of Shri Dinesh Kashyap and with the U Broad Bend, bogus forms were generated. It is further alleged that from the premises, various PAN Card, Election Card, passport size photos, rubber stamps, laptop, computer mobile etc. and accounting documents of M/s. National Industries and other record were found and that accused no.1 in collusion with others on the basis of the bogus billing had obtained false tax credit and thereby has caused damage to the Government treasury. It is also alleged that leave and lease agreement was found the name of accused no.2 as also invoices of M/s. Kamotech Industries and M/s. Falcon Industries and it was indulged in bogus billing and that in the year 2015, 2016 and 2017, various forms were generated under the VAT Act by showing false purchase and sales and thereby as obtained false credit of Rs. 44,87,478/- for the year 2015-16 and credit of Rs. 2,37,41,825/- for the year 2016-17 and that though the tax was not paid, a tax credit was taken by issuing tax invoices and hence, FIR against M/s. National Industries was filed for issuance of false invoices. It is further alleged that registration under the VAT Act is mandatory if the turnover of the merchant in manufacturing or trading is crossed the statutory limit and that it is the duty of the merchant to collect the tax and deposit in Government treasury. However, while depositing the tax, the tax paid while purchase of the goods is to be deducted on the basis of the tax invoices. However, one has to produce tax invoices while claiming tax credit. However, purchaser would not be entitled to tax credit if the goods purchased out of the Gujarat unless he received 'C' form and that without there being any purchase of goods, tax invoices were generated as also in collusion with each other interstate transaction was shown and also received 'C' form/'F' form. It is further alleged that the accused no.1 in collusion with various persons executed various transactions on the basis of bogus billing and involve himself in illegal financial profiteering and that by creating bogus transaction and showing payment of VAT and CST, tax credit were taken. That to get the benefit in Central Sales Tax to the merchants of other States, even though no purchase was made, Form 'C' and Form 'F' received from online system and issued to various merchants and tax credit was obtained and that certain transactions were executed on the basis of various Form, TIN Numbers and thereby as caused losses to the Government treasury. Thus, the FIR came to be lodged.