Section 132 of the CGST Act, 2017 —–Bail —- The applicant has filed bail application under Section 439 of the Cr PC. The applicant was arrested on 23.02.2022 in connection with the alleged offences punishable under Section 132(1)(c) of the Act. The registration of 39 suppliers has been cancelled ab initio on the ground that those registered dealers were fictitious entities. Hence, the ITC availed from these registered dealers were not available to them. It is submitted that the applicant purchased goods under Tax Invoice after verification of GST registration on the web portal of GST Department. The applicant have manufactured the final products of copper out of the material purchased under the Tax Invoice and then sold to its buyers under the Tax Invoice and passed on Input Tax Credit. The company has not received any SCN either under Section 61 / 73 or 74 except the SCN for the tax period 01.07.2017 to 03.10.2019 under Section 74/122 for Rs.20,86,67,524/-, to which they have filed a reply and had also deposited Rs.7,71,22,360/- under protest. The business transaction of for the period 01.07.2017 to 03.10.2019 has been assessed, therefore, for the same period, there cannot be a second SCN unless the first notice is adjudicated. The complaint in the form of charge-sheet is filed on 22.04.2022. The applicant had co-operated with the investigation. The court observed that the allegations are of wrongfully availing ITC to the tune of Rs.138.71 Crores. The applicant purchased through tax invoices and E-Way Bills upon payment of applicable GST while dealing with the dealers having valid GSTIN. The maximum punishment for the alleged offence and the provisions of compounding the offences, this Court deems it just and proper to exercise discretion in favour of the applicant, as trial will take its own time to conclude.

Held that:- The Hon’ble High Court granted bail to the Applicant subject to certain conditions.