The petitioner, Santosh Kumar Gupta is imagined to have created about ten Firms and was generating fake bills, invoices within the name of said Firms facilitating the ailment of the advantage of Input decrease (ITC) without actually supply/ receipt of products and services which were credited within the name of these Firms within the Bank Accounts which he was handling all those accounts having taken signed blank cheques from said Account-Holders.
The counsel appearing for the Petitioner submitted that it's not the case within the complaint that actually, such proprietors of these Firms weren't there and therefore the materials against the Petitioner are the statements of these persons who to urge obviate the trials of law have implicated this Petitioner. He submitted that materials on record don't indicate the indulgement of the Petitioner within the business affairs of all those Firms. consistent with him, the whole cast of the prosecution is predicated on documentary evidence, by now all such documents which consistent with the prosecution are incriminating are seized and therefore the statements of the fabric witnesses are recorded. He submitted that the quantum of ITC based upon all those fraudulent transactions as alleged stated to possess been taken, has been highly inflated to put gravity on the case. He further submitted that no such direct material has been collected to point out that this Petitioner had passed on the ITC to the tune as above for having unlawful gain unto himself when the very fact remains that within the meantime, the Department has issued summons to all or any those entities for the payment of ITC availed by them.
Senior Standing Counsel appearing for the CGST opposed the move. about the written objection, he submitted that here the Petitioner is involved within the commission of Economic Offences and therefore the materials collected thus far reveal that the Petitioner is that the kingpin and has defrauded the State Exchequer to the tune of an enormous amount around Rs.40.66 crore by availing the ITC just by managing to possess transactions reflected on papers without a supply of products or services actually and for the aim, he has created enormous fake documents like invoices, bills, etc., besides creating fake Firms and opening Bank accounts within the name of these entities which haven't any real existence within the Commercial World.
The only Judge Bench while refusing to grant bail said that the Petitioner is claimed to possess been involved within the commission of the above Economic offences which are considered to be grave. Such dubious activities in committing offences for creating huge unlawful gain by causing huge loss to the State Exchequer may be a step towards not only scuttling the method of development within the country but also in standing as a developed country within the globe during which our march is on.
“This introduction of the GST is for simplification and harmonization of tax Regime in reducing the value of production, reducing inflation and making Indian trade and Industry more competitive, domestically also as internationally and with seamless transfer of Input decrease (ITC) from one stage to a different within the chain useful addition; in creating in-built mechanism within the design of products and services tax is intending to incentivize tax compliance by the taxpayers so on finally broaden its base in lowering the tendency of evasion. Such roles imagined to are played by the Petitioner stands within the direction of creating unlawful gain by putting up the show that for such sincere involvement in business and completing an equivalent, his entitlement to the large sum as an incentive within the sort of Input decrease (ITC) flowed which he received tending to foil the whole move in introducing this new Tax Regime,” the court said.