STATE Vs. M. PREMRAJA

JUDGEMENT

(1.) This Petition has been filed to cancel the Bail Order, dtd. 14/8/2023 granted by the Principal Sessions Judge, Chennai, in Crl.M.P. No.19972 of 2023 in R.R. No.23 of 2023 on the file of Principal Sessions Court, Chennai.

(2.) The learned Special Public Prosecutor appeared for the Petitioner submitted that the Court below failed to appreciate the fact that the Respondent was not cooperate with the Investigating Agency during the initial stage of investigation and also failed to present himself for investigation despite issuing several Summons, and thereafter Lookout Circular was issued vide No.1/SIC/(ACK)/LOC/2023-9099 by Bureau of Immigration, by Ministry of Home Affairs, dtd. 28/6/2023 while purportedly attempted to flee from the country through Bangalore International Airport on 28/6/2023 he was apprehended by the Immigration officials. Finally, he appeared before the Investigating Agency on 29/6/2023, after destroying key evidences such as the Sim Card and Phone used by him for communicating with his accomplices. Thereafter on issuance of Summons, Statement was recorded on 30/6/2023 under Goods and Service Tax Rules 2017 (in short "GST") inter alia he admitted being involved in Bill Trading activities along with another Accused-Premanathan and he explained the entire process. The facts unearthed during the course of the investigation reveals that he was master mind in forming various dummy firms/entities, opening Bank Accounts in the name of the same and was issuing face Invoices without supply of goods and services, which has resulted in causing huge revenue loss to the Government Exchequer. The entities created and operated by Shri Premaraja has passed on fraudulent input tax credit of Rs.175.88 Crore with corresponding taxable value of Rs.973.64 crore without any actual supply of goods and services. Thus, he has created a Loss to the Exchequer to the extent of Rs.175.88 Crore in violation of provisions of Central Goods and Service Tax Act, 2017. While granting Bail the learned Sessions Judge failed to appreciate the alleged involvement of the Accused/Respondent by creating fake Invoices, which was operated by Sri Premraja and there is high possibility that he may flee again. Further, Accused/Respondent may threaten the evidence, which may hamper the progress of investigation. Besides, the learned Judge granted Bail, for the reason that Sec. 41-A of Cr.P.C. has not complied with by the Investigating Agency. In fact, the Respondent not cooperate during the course of the investigation and he was asked to appear before Investigating Officer, dtd. 23/6/2023 and also again Summon was issued to him but he failed to complied with the Summon and also no explanation was offered by him for non-appearance. He deliberately avoided to appear before the Investigating Agency with an intention to flee away from the country but without appreciating such facts and circumstances the Court below granted Bail as such is erroneous and liable to be set aside.

(3.) Further, the reason assigned by the Court below for grating Bail is that the procedure as contemplated under Sec. 41-A of Cr.P.C. not been complied with, which is not correct for the reason that the Respondent/ Accused issued with Summons under Sec. 70 of GST Act, which is equivalent to Sec. 41-A of Cr.P.C. and the grounds for arrest also informed as per Sec. 69(ii) of the GST Act. Therefore, the reason assigned by the learned Judge for granting Bail is unsustainable. Further, the Respondent again trying to leave the country and refused to cooperate for the investigation. Hence, he prayed to cancel the Bail.