AJAJ AHAMAD Vs. STATE OF ODISHA

JUDGEMENT

(1.) The present Petitioner, who is in custody since 12/1/2021, has filed the instant bail application under Sec. 439 of Cr.P.C. corresponding to 2(C)CC Case No.51 of 2020 pending in the court of the Learned S.D.J.M., Panposh, Rourkela for commission of offences under Ss. 132(1)(C) and 132(1)(b) of the Central Goods and Services Tax Act, 2017 (hereinafter referred to as "the CGST Act, 2017" for brevity). Prior to the instant application, the Petitioner had approached the learned 1st Additional Sessions Judge, Rourkela, for Bail, but it was rejected vide order dtd. 28/7/2021.

(2.) Shorn of unnecessary details, the prosecution's case is that after a search enquiry conducted on M/S Pacific Packing Industries, it was found that the firm of the petitioner namely, M/S Sony Iron and Steel Trading Co. was engaged in availing fraudulent ITC from the sham subsidiaries of M/S Pacific Packing Industries. Furthermore, ITC benefits to the tune of Rs.5,02,21,055.00 were acquired by the petitioner's firm and M/S Harihara Enterprises, by way of fake bills without the actual supply of goods.

(3.) Per contra, the learned counsel for the Petitioner earnestly submitted that the allegations made against the Petitioner in the prosecution report are bald allegations which lack the backing of any substantial evidence. It was contended that the Petitioner was held responsible for availing a total GST amount to the tune of Rs.5, 02, 21, 55.00 against M/S Sony Iron and Steel Trading Co and M/S Harihara Enterprises. However, the petitioner is the proprietor of only the former company and the later is under the proprietorship of Dhanjaya Suna. The petitioner has been arrayed as an accused for the acts and omission of M/S Harihara Enterprises as well, but solely on the basis of his own confession. Law is well settled that the confession of the accused cannot be used against him. It has been submitted that the investigation/enquiry officer has wrongly calculated that date sheet details and has thereby, erred in indicating the misappropriated tax amount above the margin of Rs.5.00 crores. Further, the payment of tax to the tune of Rs.19,29,972.00 by the petitioner has been overlooked by the investigating officer. It is submitted that the Petitioner has been duly cooperating with the authorities and has on multiple occasions appeared in the offices to assist the authorities with the investigation, but despite his bonafide actions, he was forwarded into custody on 12/1/2021. The Petitioner's family is on the brink of starvation due to his absence. Furthermore, the final charge sheet has been submitted and the documentary evidences have been seized, leaving no scope for the tampering of evidence. Learned counsel for the Petitioner finally urged that there is no risk of the Petitioner fleeing since he resides locally and he should be released on bail as the trial has not commenced and the petitioner has been advised by the doctor to undergo a bypass surgery.