Gauhati High Court scraps bail to Tax Consultant for unjustly availing ITC

The Gauhati High Court has revoked bail for Sourav Bajoria, a tax consultant accused of claiming Input Tax Credit (ITC) based on fake invoices and e-way bills. The court found that the alleged offence involved a significant economic crime, necessitating a thorough investigation. Granting bail at this stage was deemed likely to impede the investigation and potentially tamper with evidence.

In Sourav Bajoria v. Union of India [Case No.: Bail Appln./1718/2021 dated August 23, 2021], Sourav Bajoria ("the Petitioner") has filed a petition seeking bail in connection with GST Case No. CGST/DGGI/GST/1928/2021, under Section 132(5) of Central Goods and Service Act, 2017 (the CGST Act).

The Petitioner was alleged of unjustly availing Input Tax Credit (ITC) on fake invoices and E-way bills alongside Mr. Amit Kumar (Co-accused). While seeking bail, the Petitioner contended that he has been in custody for a month, as on date, with effect from July 19, 2021 and therefore, his further custodial detention is absolutely not necessary in the interest of investigation of the case.

As opposed to the Petitioner, the Respondent Counsel argued that the Petitioner had unjustly availing Input Tax Credit (ITC) onfake invoices, E-way bills and he was in complete league and connivance with the Co-accused in commission of the alleged offence. The investigation so far carried out reveals that the Petitioner had collected fake invoices, from various firm and individuals.

At the perusal of all the facts and evidences, the Honorable Gauhati High Court opined that this complaint alleged a huge economic offence and therefore, a thorough and detail investigation is essential.

Further, the Court opined that; considering the materials so far collected by the Investigating Agency, the enlargement of the Petitioner on bail, at this stage, is likely to hamper the investigation and tamper evidence which may amount to compromising with the entire investigation of the case.

The Court has also took note of the fact that the investigation of the case, involves a huge number of documents to be examined at different levels and at different places necessitating reasonably sufficient time to the Investigating Agency.