SANJEEV JAIN Vs. UNION OF INDIA

JUDGEMENT

(1.) These two bail applications have been filed by the petitioners under Section 439 CrPC.

(2.) Facts of the case are that a letter dated 27.11.2020 was received from the Assistant Commissioner, CGST Division-C, Bhiwadi to the effect that income tax credit (for short, 'ITC') on the invoices issued by M/s. Veto Merchandise had been wrongly availed. Alongwith the aforementioned letter, a letter written by the Deputy Commissioner, Circle-I, State Tax, Jaipur dated 3.3.2020 was also enclosed, wherein it was stated that upon verification of M/s. Veto Merchandise, Jaipur (GSTIN- 08AA0FV2648B1Z1), the said firm was found non-existent at its principal place of business and, therefore, the invoices issued by M/s. Veto Merchandise, Jaipur (GSTIN-08AA0FV2648B1Z1) to M/s. Swissline Intertrade Pvt. Ltd. F-438, Phase-1, Ind. Area, Bhiwadi (GSTIN- 08AAJCS6595A1Z3) were also fake/bogus. The Dy. Commissioner, State Tax had also informed that no business activities were done at the business premises of M/s. Veto Merchandise and that the registration of the said firm had been cancelled and complete ITC had been blocked.

(3.) Returns and other relevant details of M/s. Swissline Intertrade Pvt. Ltd. F-438, Phase-1, Ind. Area, Bhiwadi (GSTIN- 08AAJCS6595A1Z3) were checked on AIO and it was found that earlier M/s. Swissline Intertrade Pvt. Ltd. F-438, Phase-1, Ind. Area, Bhiwadi (GSTIN-08AAJCS6595A1Z3) was registered under Central Excise and later, it was registered under the GST regime. Since July, 2017 (after enactment of GST), M/s. Swissline had filed GSTR 3B returns upto February, 2020 and the total taxable supplies shown in GSTR 3B returns were Rs. 300.09 crores. M/s. Swissline Intertrade Pvt. Ltd. had paid tax amounting Rs. 48.87 crores through ITC and Rs. 2.20 lakhs only through cash. It had also paid cash Rs. 4.71 lakhs under RCM. The cash : ITC ratio of M/s. Swissline Intertrade Pvt. Ltd. is 0.04 : 99.96.