The Hon’ble High Court stayed the impugned order till the next date of hearing.
Section 132 of the CGST Act, 2017—Bail -- The petitioner challenged the order dated 9th July, 2021 passed on the application of the respondent seeking cancellation of the bail. It is alleged that the petitioner was the key person in claiming ITC on the strength of bills of various suppliers which were non-existing and fictitious to the extent of Rs. 27.05 crores. The petitioner was arrested on 1st December, 2019 and granted bail on 23rd December, 2019. The direction imposed at the time of grant of bail on the petitioner was that he shall deposit the amount of Rs. 2.70 crores with the department latest by 6th January, 2020. The petitioner submitted Rs. 1.10 cash ledger debit and debited ITC ledgers worth Rs. 1.60 crores. The respondent filed an application claiming that the ITC ledger worth Rs. 1.60 crores could not be accepted as the ITC ledgers were under a cloud. The learned CMM vide the impugned order declined to accept the ITC ledger worth Rs. 1.60 crores and cancelled the bail of the petitioner, issuing non-bailable warrants against him. The court observed that the petitioner has availed ineligible ITCs to the tune of Rs. 27.05 crores, thereby implying that at the moment there is no material before the respondent that ITC’s worth around 233 crores are also fraudulent.
Held that:-The Hon’ble High Court stayed the impugned order till the next date of hearing. NBW issued against the petitioner are kept in abeyance. Listed the matter on 21st September, 2021.
The Hon’ble High Court stayed the impugned order till the next date of hearing.
Section 132 of the CGST Act, 2017—Bail -- The petitioner challenged the order dated 9th July, 2021 passed on the application of the respondent seeking cancellation of the bail. It is alleged that the petitioner was the key person in claiming ITC on the strength of bills of various suppliers which were non-existing and fictitious to the extent of Rs. 27.05 crores. The petitioner was arrested on 1st December, 2019 and granted bail on 23rd December, 2019. The direction imposed at the time of grant of bail on the petitioner was that he shall deposit the amount of Rs. 2.70 crores with the department latest by 6th January, 2020. The petitioner submitted Rs. 1.10 cash ledger debit and debited ITC ledgers worth Rs. 1.60 crores. The respondent filed an application claiming that the ITC ledger worth Rs. 1.60 crores could not be accepted as the ITC ledgers were under a cloud. The learned CMM vide the impugned order declined to accept the ITC ledger worth Rs. 1.60 crores and cancelled the bail of the petitioner, issuing non-bailable warrants against him. The court observed that the petitioner has availed ineligible ITCs to the tune of Rs. 27.05 crores, thereby implying that at the moment there is no material before the respondent that ITC’s worth around 233 crores are also fraudulent.
Held that:-The Hon’ble High Court stayed the impugned order till the next date of hearing. NBW issued against the petitioner are kept in abeyance. Listed the matter on 21st September, 2021.