The Meerut Court has denied bail to persons involved in fake copper scrap billing racket with the objective of wrongful availment of Input Tax Credit (ITC).
The bench of Mohd. Babar Khan (Additional District & Sessions Judge) has observed that the total GST evasion to the tune of Rs. 59,00,98,178. The investigation is under progress. The applicant if released on bail will definitely try to destroy the evidence and influence the witnesses and there is his high flight risk considering his role.
As per the prosecution version, information was recieved that Chandan Sharma is associated with the fake billing racket that is indulged in issuance of fake tax invoices of Copper Scrap to various manufacturers.
The information was received that on midnight of Friday i.e, 06.12.2024, he will be coming to Hotel Sunshine morning Ramprastha, Ghaziabad and will stay there till Saturday morning. As per the information he will carry some electronic devices containing details of bogus bills issued by him to the end user units without actual supply of goods.
Moreover, it was also informed that he had hidden some electronic devices and records at the residence of his friend Shri Shiv Kumar at Panipat. Search was also conducted in Room No. 202 & 212 of Hotel Sunshine where Shri Chandan Sharma and his associates were staying and during the search 08 mobile phones were recovered from the possession of Shri Chandan Sharma and his associates.
In association with Shri Vikrant Singhal and arranged fake ITC therein and passed on that fake ITC to the other tax payers by issuing invoices of those firms without supplying of goods and thus passed on fake ITC amounting to Rs. 59.80 Crores (approx). he also unequivocally admitted in his statements that since all the purchase and sale in those 10 firms were without receipt and supply of goods hence whatever bills, bilities and e-way bills were issued from those firms all were fake. During the course of investigation, Principle Plance of business of all the 10 firms, as tendered by Chandan Sharma in his statements, were visited under Authorization of Inspection and all those firms found non-existence/non operational at their respective Principle Place of businesses.
The applicant/accused submitted that the involvement of the applicant/accused in the said crime has been shown on the basis of apparent facts which are absolutely wrong. The accused/applicant is innocent and is falsely implicated by DGGI Ghaziabad in this above case. It is very crystal clear that the accused/applicant has no liability towards the GST Department. The perusal of the evidence collected by the DGGI is crystal clear that the allegation of passing on fake ITC by the accused/applicant is nothing but made a Junction without any basis.
The department contended that Analysis of the GSTR-1M of all the 10 firms managed to controlled by Chandan Sharma revealed that ITC amounting to Rs. 59.80 Crores has been passed by issuing tax invoices of those firms. Chandan Sharma emerged out as the mastermind for the 10 firms managed and controlled by him, and the brain behind the entire episode of availment of fake ITC on the strength of invoices taken without receipt of underlying goods and passing on of the fake ITC by issuing invoices of those firms without supply of goods. The investigation is still going on and there may be additional material yet to be collected. If the applicant would enlarged on bail then he would hamper and temper with the evidence and would try to affect the ongoing investigation. He further submits that the competent authority has recorded reasons to believe u/s 69 of the Act before making an order of arrest. The intelligence officer has communicated grounds of arrest to the applicant/accused before affecting his arrest.
The court rejected the bail application, preferred by the applicant.
Case Details
Case Title: Chandan Sharma Versus Union of India
Case No.: Bail application No. 1140/2025
Date: 25.03.2025
Counsel For Petitioner: Nitin Kaushik
Counsel For Respondent: Lakshay Pratap Singh
Read More: Gurugram Court Grants Bail Over Defective Arrest Memo in Rs. 7.13 Crore GST ITC Fraud Case
