ATTAAULHA MOHAMMAD NAIM CHAUDHARI Vs. STATE OF MAHARASHTRA

JUDGEMENT

(1.) Apprehending arrest in connection with the Summons dtd. 28/2/2022 and 15/3/2022 issued under Sec. 70 of the Central Goods and Services Tax Act, 2017 ( 'C.G.S.T. Act ' for short), applicant had preferred Anticipatory Bail Application before the Sessions Court at Nashik, with Ajjimullah Naim Choudhary and Hafijullah Ajjimullah Choudhary. Their application was rejected on 5/4/2022. Co-applicants, Ajjimullah Naim Choudhary and Hafijullah Ajjimullah Choudhary had approached this Court in Anticipatory Bail Application No.1087 of 2022. This Court rejected the said application on 21/4/2022.

(2.) Superintendent (Preventive) CGST and CX, Nashik, Commissionerate, Nashik found, that M/s. Maharashtra Steel Traders (Prop. Ajimullah Naim Chaudhary) and M/s. Hira Steel (Prop. Hafijullah Ajimullah Choudhary) availed wrong Input Tax Credit ( 'ITC ' for short) on the invoices issued by M/s. Sahjanand Enterprises, M/s. Chandan Enterprises, M/s. Tej Steel, M/s. Gajanan Enterprises, M/s. Gauri Ispat and M/s. Falcon Trading. Thus, summons, were issued to M/s. Maharashtra Steel Traders and M/s. Hira Steel. Proprietor of both the firms responded to the summons but did not produce documents in support of the claim of ITC. However, in the statement, they disclosed that applicant herein manages the business of both the firms and he would be in a position to substantiate the claim of the ITC. In view of the statements, summons was issued to the applicant on 21/10/2021 to appear on 27/10/2021 for giving oral evidence. However, applicant did not appear. It is respondent 's case that proprietors of these two firms, Ajjimullah Naim Choudhary and Hafijullah Ajjimullah Choudhary vide their letters dtd. 17/11/2021 informed them that applicant was arrested by MGST Officers of Mumbai for fraudulently availing ITC. It was further informed that M/s. Hira Steel has reversed an ITC of Rs.9,99,61,194.00 against fake ITC availed on the invoices issued by M/s. Gauri Ispat, M/s. Chandan Enterprises and M/s. Sahjanand Enterprises. Similarly, Shri Ajimullah vide letters dtd. 6/12/2021 and 17/1/2022 informed that they have reversed an ITC of Rs.4,06,00,417.00 against the fake ITC availed on the invoice issued by M/s. Gauri Ispat. It is respondent 's case that during verification, it was found that 19 major suppliers have passed total ITC of Rs.15,87,88,831.00 during the month of September, 2021 to December, 2021 to M/s. Hira Steel out of which Goods and Services Tax Identification Number (GSTIN) 10 suppliers were either suspended or suo-motu cancelled. Similarly, other 23 suppliers have passed total ITC of Rs.10,43,92,824.00 during the months of September, 2021 to December, 2021 to M/s. Maharashtra Steel Traders out of which GSTIN of 12 suppliers were either suspended or suo-moto cancelled. During the investigation, genuineness of one of the suppliers namely M/s. Anu Enterprises, who had supplied the goods to both the firms was verified. In the course of which, Mr. Akash Kisan Limbole, proprietor of M/s. Anu Enterprises in his statement dtd. 24/3/2022 stated that he was unaware of any firms namely, M/s. Anu Enterprises and all matters related to purchase, sales and bank transactions were being managed and looked after by Mr. Ataullah Naim Choudhari (Applicant herein).

(3.) Thus, complicity of the applicant in circular trading by floating bogus companies in availing ITC fraudulently is apparent. It is also, apparent from the record that applicant is the master-mind in fraudulently availing ITC, by floating bogus entities through his near relatives. It is so evident from the statements of Ajjimullah Naim Choudhary , Hafijullah Ajjimullah Choudhary and Mr. Akash Kisan Limbole. Proprietor of M/s. Maharashtra Steel Traders and M/s. Hira Steel have been arrested.