PARAS JA Vs. UNION OF INDIA

JUDGEMENT

(1.) Heard Sri Ramakant Gaur, Advocate, holding brief of Sri Prateek Kumar, Advocate, assisted by Sri Samaksh Sharma and Ms. Sneha Agha, learned counsels for the applicant and Sri Parv Agarwal, learned counsel for the opposite party.

(2.) The instant bail application has been filed on behalf of the applicant, Paras Jain @ Rohan Jain, with a prayer to release him on bail in Case Crime No. DGCI/GRU/INV/2665/2021, under Ss. 132(1)(b) and 132(1)(i) of Central Goods and Services Tax Act, 2017, Directorate General, D.G.G.I., G.S.T., Ghaziabad Regional Unit, Meerut, Zonal Unit, Meerut, during pendency of trial.

(3.) There are allegations in the complaint filed by the Directorate General of G.S.T. Intelligence, Zonal Unit, Meerut, regarding offences committed under Sec. 132 (1)(b) of the Central Goods and Services Tax Act, 2017 against the applicant and another coaccused, Jogvinder Singh, are that M/s ARJ Exim India availed fake Input Tax Credit (I.T.C.) of Rs.40.66 crores on the strength of invoices issued by non-existent firms, M/s JMJ Traders and Ms. Durga Traders, It was found that the aforesaid firms had passed on fraudulent I.T.C. to a common buyer, namely, M/s Balaji Enterprises, Delhi. The amount of fraudulent I.T.C. passed on by the two non-existent firms to M/s Balaji Enterprises is Rs.57.96 lacs. In the search conducted in the registered office of M/s Balaji Enterprises, Sandeep Singhal, Proprietor of the firm stated that he has received some invoices for metal scrap from the applicant without receiving any goods. He admitted that bills from M/s Robin Traders, M/s Balaji Enterprises and other firms were sent by the applicant through whatsapp without supply of any goods and admitted his tax liability on account of availing fake I.T.C. He voluntarily deposited Rs.3.14 crores on 17/2/2022. During further investigation, the applicant and co-accused, Jagvinder Singh, were found in one secret office at Shastri Nagar, New Delhi from where number of incriminating documents, like Adhar Cards, PAN Cards, forged rent agreements, forged electricity bills, etc., stamps of various firms, electronic devices and invoices of fake firms were recovered alongwith cash of Rs.35.00 lacs. Co-accused admitted managing and controlling number of firms by issuing fake invoices. The statement of Kunal Parcha, Accountant of Sri Jagvinder Singh was recorded, wherein he admitted issuing of fake bills on the direction of the accused. This fact was proved from the whatsapp of Kunal Parcha and the accused. The applicant admitted the allegations in his statement recorded under Sec. 70 of C.G.S.T. Act, 2017. It was found that they have issued fake invoices from 76 bogus firms to various business buyers without supplying of goods or services and have availed ineligible Input Tax Credit amounting to Rs.343.00 crores.