SMRUTI RANJAN MOHANTY Vs. STATE OF ODISHA

JUDGEMENT

(1.) The present Petitioners, who are in custody since 21/12/2020, have filed the instant bail application under Sec. 439 of Cr.P.C. corresponding to 2(C)CC Case No.03 of 2020 pending in the court of the Learned J.M.F.C(R), Cuttack for commission of offences under Ss. 132(1) (c), 132(1)(b) and 132(1)(i) of the OGST Act, 2017. Prior to the instant application, the Petitioners had approached the learned District and Sessions Judge, Cuttack, vide Bail Application No. 11023 of 2020 which was rejected on 25/1/2021.

(2.) Shorn of unnecessary details, the prosecution's case is that both the Petitioners alongwith other accused, were involved in the creation and operation of 12 fictious/ bogus firms in the name of unconnected persons by misutilizing their identity proof. The same was done behind their back, in order to avail and utilize bogus input tax credit of an amount of Rs.20.45 crores on the strength of fraudulent purchase invoices without any physical receipt or actual purchase of goods. As such both of them are alleged to be part of a collusion to evade taxes to the tune of approximately Rs.42.00 crores and therefore are liable for the payment of the same under Sec. 132 of the OGST Act, 2017.

(3.) Per contra, the Ld. Counsel for the Petitioners earnestly submitted that the allegations made against the Petitioners in the prosecution report are bald allegations which are completely false and baseless. It was contended that the Petitioner No. 1 was a mere employee who has dutifully followed the directions and orders of his superiors. Similarly, Petitioner No. 2 was in no way connected to the case as he is a mere paan shop owner and has no nexus to the alleged fraud in any way whatsoever and has been embroiled in the matter merely because he is the brother of Petitioner No. 1. It has bene submitted that the alleged fraud has been perpetrated by someone else and the present Petitioners who are mere pawns, have unduly been made scapegoats despite having no involvement in the alleged fraudulent activities. It is further submitted that the Petitioners have been duly cooperating with the authorities and have on multiple occasions appeared in the OGST offices to assist the authorities with the investigation, but despite their bonafide actions, they were forwarded into custody on 21/12/2020 and have remained in custody ever since. The Petitioners have wives, young children and a widowed mother who are completely dependent on the Petitioners and are on the brink of starvation due to the absence of the only two earning members in the family especially given the pandemic situation. The Ld. Counsel for the Petitioners finally urged that given that there is no risk of the Petitioners fleeing given that they reside locally and that they shall not tamper with evidence, they should be released on bail as even trial has not commenced and they have been in custody for over a year.