NIRAV SAMSON GOHIL Vs. STATE OF GUJARAT

JUDGEMENT

(1.) The applicant has preferred present Regular Bail Application under Sec. 439 of the Cr.P.C, in connection with File No. DGGI/AZU/ Gr.D/12(4)72/2018-19 for the alleged offence punishable under Ss. 132(1)(b) and 132(1)(c) of the Central Goods and Service Tax, 2017 (for short 'Act').

(2.) According to case of the respondent No.2, the officer of Directorate General of GST Intelligence, Zonal Unit, Ahmedabad received specific intelligence that M/s. Bright Corporation, a Partnership Firm, having principal place of business at Ahmedabad, doing scrape business indulged in availing and passing on Input Tax Credit (for short 'ITC') to various buyers, without actual supply of corresponding goods. Search of Operations were carried out and during the investigation, it was found that 22 suppliers of M/s Bright Corporation were found non-existence or non-operational at their registered premises and they have supplied only invoices without actual supply of goods having ITC value of Rs.17.65 crores and entire transaction on paper. It further reveals that in chain of supply of ineligible ITC, received by M/s. Bright Corporation, which was further passed on M/s. Arihant Metal Company and in turn, it was passed on M/s. Rajat Metal Corporation. The investigation further reveals that present applicant Nirav Samson Gohil being an active partner of the firm, involved in management/rotation of cash flow in this fake invoice chain. In short, it is the case of the department that, M/s. Bright Corporation had availed fraudulent ITC on the basis of fake invoices received from their firm's suppliers, causing loss to Government exchequer to the extent of Rs.17.65 crores.

(3.) In the aforesaid facts, the authority concerned has Reasons to Believe that the applicant has committed an offence as referred above and accordingly, he has been arrested on 26/11/2021 under Sec. 69 of the Act. He was produced before the Chief Metropolitan Magistrate, Ahmedabad and the court concerned authorized the authority for arrest of the applicant. After completion of the investigation, respondent authority served demand-cum-show cause notice dtd. 30/11/2021, as provided under Sec. 74 of the Act on M/s. Bright Corporation and 3 other persons including present applicant herein. The Dy. Director has also filed complaint before the Additional Chief Metropolitan Magistrate, Ahmedabad, which came to be registered on 21/12/2021 as Criminal Case No. 159448 of 2021.