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Bail denied in Bogus GST Billing/Wrongful ITC Claim

Case Name :  Principal Commissioner of Central Tax Vs Supreet Singh Bakshi (Patiala House Courts)

Facts of the case : The applicant, Supreet Singh Bakshi (managing the affairs of all three firms) is the proprietor of M/s. Swift Enterprises.

Whereas, his father and brother are the Directors of M/s. Megabyte I.T. Pvt. Ltd. and his employee Rakesh Kumar Gupta is the proprietor of firm namely M/s. I.T. Solution.

It has been claimed that there is an evasion of tax of more than Rs. 20 Crore and claiming of Input tax credit by issuing Bogus (Fake) invoices without actual supply of goods.

Relevant grounds : By investigating, the Chief Metropolitan Magistrate Manish Khurana observed that the transactions involved among these three firms which are managed by the applicant are in circular movement i.e. the GST invoices are issued (inter-se) by the above said three firms without making actual supply of goods.

Also, wrong credit of Input tax credit of more than Rs. 20 Crore was claimed on these invoices, which caused a loss of government revenue.

Conclusion : By keeping in mind all the facts and evidences, Chief Metropolitan Magistrate denied the bail to the applicant (Supreet Singh Bakshi). Hence, bail application stands dismissed and disposed of.

Author: Niranjan Reddy

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