RAJEEV MISHRA Vs. STATE OF ODISHA

JUDGEMENT

(1.) The petitioner, presently in custody, has filed the instant bail application under Section 439 of the Code of Criminal Procedure, 1973 corresponding to 2(c) CC Case No.03 of 2020 pending in the Court of the learned Judicial Magistrate First Class (Rural), Cuttack. The petitioner herein is the accused in connection with alleged commission of offences punishable under Section 69 read with Sections 132(1)(b), 132 (1)(c) and 132(1)(i) of the Odisha Goods and Services Tax Act, 2017. Prior to the instant application, the petitioner had previously approached the court below vide Bail Application No.1093 of 2020 arising out of 2(c)CC Case No.03 of 2020 which was rejected on 25.01.2021.

(2.) Bereft of meticulous details, the facts of the matter canvassed are that a large number of fraudulent business transactions were made using several fictitious firms, including, M/s. Nayak Enterprises, M/s. Sahoo Enterprises, M/s. Mohanty Sales Agencies, M/s. Maa Bhawani Enterprises, M/s. Binash Enterprises, M/s. Sangeet Hotels and others. These several functionally vacuous entities were found to have been fraudulently registered under the OGST Act, 2017 by the present petitioner in collusion with other persons. Several persons have been beguiled into lending their name and documents for the purpose of registration of these 12 manikin firms on the false pretext of providing them gainful employment, arranging loans from commercial banks or providing them with monthly stipend. These identity documents have been mis-appropriated for the purpose of obtaining registration certificate under the GST Act in order to masquerading fake business transactions with an intention to defraud the state exchequer.

(3.) Such a modus operandi of creation of these dummy and sham firms, has been highlighted on numerous occasions in the past. The petitioner and other accused were predominantly engaged in pedalling of bogus input tax credit secured on the strength of fake and fabricated invoices without supply of any physical goods to other such existing and non-existing firms, thereby enabling the recipients to avail and utilize the same while discharging tax liabilities. These fake and fraudulent transactions have, amongst others, caused huge loss to the State exchequer to the tune of about Rs. 42.36 crores.