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Cri.B.A.No.1032/2022
Criminal Bail Application No.1032/2022
CNR No. MHNS010044082022
[Farooq Rahim Khan V s. State]
Order below Exh.1.
This is application for regular bail U/s. 439 of Cr.P.C. in
connection with Arrest order No.1 Addl. CST Nashik/INV
Arrest/United Steel/2022­2023/B­44 registered with GST Assistant
Commissioner, Nashik for the offences under Section 69 and 132 of
the Maharashtra Goods and Services Act, 2017 at the instance of
Shri.Dr.D.M.Rote, Commissioner, Nashik GST.
2.

Bail application is filed on the ground that the applicant
is innocent and has been falsely implicated in the case. That the
applicant himself surrender. He is illiterate person and totally
unaware about GST. Further custodial interrogation is not
necessary. Allegations are vague bald and general in nature.
Investigation is practically completed. That applicant has deep root
in the society and there is no possibility of absconding. That he is
ready to co­operate with the investigating agency and abide by all
the terms and conditions which the court may impose. On these
main grounds and others have prayed for bail.
3.

Notice was issued to State. State appeared through Ld.

APP Mr. Dalavi and filed say resisting for grant of application on the
grounds that the applicant has claimed fraudulent ITC. The fraud
committed is not less than Rs.13.11 Crores. In spite of service of
summons, the accused did not cause appearance. If bail is granted,
he will be in a position to intimidate and influence important
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Cri.B.A.No.1032/2022
witness. The accused may influence transporters. He will destroy
evidence. That accused was not trying to cooperate with
investigation proceedings and trying to conceal the facts. M/s.
United Steel Traders’ registration certificates are cancelled suo­motu
under reason of fraud by GST Authority. They will continue the
offence. The applicant has availed total input tax credit of Rs.14.60
Crores in his firm and there are 24 number of suppliers.
Investigation is in progress. He will encourage others to resort to
such fraudulent practice for their personal gain at the cost of state
exchequer. On these main grounds and others has prayed for
rejection of bail application.
4.

Heard
Ld.

Advocate
Jaslin
Chahal­Ujjainwal
for
applicant. Perused bail application. Heard Ld. APP Mr.Dalavi.
Perused police papers and say filed by Assistant Commissioner of
State tax (Investigation) NAS­INV­D­003 Nashik Division, Nashik.
5.

The applicant is the Proprietor of M/s. United Steel
Traders which is registered under the provisions of Central
Government Goods and Service Tax and the Maharashtra
Government Service Tax Act 2017. The applicant has claimed
fraudulent ITC on the inward supply transaction of not less than
Rs.72.86 crore and has received fake/disallowable ITC of not less
than Rs.13.11 crore. These offences are punishable under sub­
section of section 132(1)(i) of the MGST Act 2017/CGST Act, 2017
as the amount of fraudulent ITC utilized and fraudulent ITC further
pass on exceeds Rs. 5 Cr, and the offences are cognizable and non­
bailable as per the provisions of section 132 (5) of the Act.

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6.

Cri.B.A.No.1032/2022
The details of fake ITC availed, utilized and further
passed on are as under :
Month of Date
of Return
Return
Investigation Filing
Visit
Date
Fake ITC Fake ITC Fake ITC
Availed
Utilised
passed on
May
2022
31/05/2022 18/06/2 3815724
022
3815724
3527848
June
2022
31/05/2022 14/07/2 1279822
022
1075706
1459452
Total
7.

5095545 4891430 4987300
Even though Investigating Officer served summons U/s
70 of MGST Act & multiple reminders to record statement of the
accused but the accused did not respond to the summons.
Ultimately warrant was required to be issued for securing his
presence before Investigating Officer.
8.

There is prima facie case against the applicant for
offence punishable under Sec.(b) and (c) of Sec.132(1). The
amount involved is huge. As far as the citation of Prateek Garg vs.
Intelligence Officer, Directorate General of Goods and Service Tax,
in Criminal Misc. Petition (Main) No.9/2022 passed by the
Himachal Pradesh High Court, relied upon by the Ld. Advocate for
applicant is concerned, it is categorically mentioned therein that the
investigation is completed. In the instant case, the investigation is
still in progress. If, at this stage, the applicant is released, there are
chances that he will pressurize the witnesses. Hence, it will not
appropriate to exercise discretion in favour of the applicant. Hence,
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Cri.B.A.No.1032/2022
the following order is passed :
ORDER
(1).

Application stands rejected.
VARDHAN
PRATAPRAO
DESAI
Nashik.
Date : 14/09/2022
Digitally signed by
VARDHAN
PRATAPRAO DESAI
Date: 2022.09.17
12:19:01 +0530
( V. P. Desai)
Additional Sessions Judge, Nashik.