Back
2021 Supreme(Del) 250
IN THE HIGH COURT OF DELHI
SURESH KUMAR KAIT, J.
Lupita Saluja – Petitioner
Versus
DGGI & Another – Respondent
Bail Appln. No. 319 of 2021 & Crl.M.B. No. 92 of 2021
Decided On : 11-02-2021
For the Petitioner:N. Hariharan, Sr. Advocate, Shadman Ahmed Siddiqui, Sumer, Siddharth S. Yadav, Samarth K. Luthra, Abhishek Pati, Advocates.
For the Respondents:Harpreet Singh, Advocate.
The main legal point established is that custodial interrogation is not always necessary and should be based on the specific facts and circumstances of the case.
Headnote:
Anticipatory Bail - Central Goods & Service Tax Act, 2017 - Section 438 Cr.P.C. - 132(b), 132(l)(c), 132(l)(e) - The court discussed the provisions of the CGST Act, 2017 including section 16, zero rated supply under section 16 of ICGST Act, 2017, and the compliances under CGST Act, 2017. The court also highlighted the verification process for suppliers, the transportation process, and the conduct of the investigating agency.
Fact of the Case:
The petitioner sought anticipatory bail in relation to an investigation under the Central Goods & Service Tax Act, 2017. The prosecution alleged creation of bogus export firms and fraudulent availing of ITC. The petitioner's involvement and financial transactions were also under scrutiny.
Finding of the Court:
The court found that custodial interrogation of the petitioner was not required and directed her release on furnishing a personal bond. The petitioner was instructed to cooperate with the investigation and not influence any witness or tamper with evidence.
Issues: The issues included the petitioner's alleged involvement in fraudulent activities, her financial transactions, and the conduct of the investigating agency.
Ratio Decidendi: The court decided that custodial interrogation was unnecessary based on the facts presented and directed the petitioner's release on a personal bond.
Final Decision: The petition was allowed and disposed of, with instructions for the petitioner's release and cooperation with the investigation.
JUDGMENT :
1. Present petition has been filed under section 438 Cr.P.C. seeking anticipatory bail to the petitioner in relation to the enquiry/investigation being conducted by the respondent under Central Goods & Service Tax Act, 2017.
2. The case of the prosecution against the petitioner herein is that applicant and her husband created five bogus export firms, namely, M/s Atlantic International Trading Pvt. Ltd, M/s Blue Star International Pvt. Ltd, M/s Sun Flame Trading Pvt. Ltd., M/s Blue Evolution Pvt. Ltd and M/s White Mountain Trading Pvt. Ltd. and fraudulently availed ITC of Rs.45 crores upon the strength of fake invoices providing fabricated information on E-way bill portal. On enquiry, it is found that all their suppliers were either non-existent at the declared principal place or the business address given in the GST registration. Moreover, none of the transporters have transported the good for the companies in question, however, only one transporter disclosed that he transported the goods from a warehouse to ICD TKD and not from any of the suppliers as claimed by the husband of the applicant in his statement dated 17.11.2020 recorded u/s 70 & 174 of CGST Act. The applicant and her husband are active directors of the abovementioned five companies and were well aware of all the tax related dealings of the companies. The applicant in her voluntary statement dated 10.12.2020 has stated that she signed all the financial documents regarding day to day work of these firms. However, during investigation, it has been revealed that applicant was drawing annual salary of Rs.7,20,000/- whereas her husband was drawing annual salary of Rs.6,00,000/-. The applicant has received approximately Rs.279 crores from her companies accounts in her personal savings account maintained in Indusind Bank and Rs.5.79 crores in her bank account maintained in ICICI Bank.
3. Learned counsel for the respondents, while opposing the present petition, submitted that from the investigation carried out and the incriminating evidence collected so far, it is clear that the applicant was not merely a housewife but she was actively involved in the affairs of the companies in question including financial affairs and was very well aware of all the misdeeds done by her in order to claim GST refund of Rs.45 crores. Moreover, the applicant is not cooperating in the investigation and since the day of arrest of her husband, she is absconding and the investigation is being conducted under strict adherence of law and under relevant provisions of CGST Act.
4. Further submitted that filing of the Writ Petitions bearing No.10013-15 have no bearing on the present investigation as this Court has not granted any stay in the said writ petitions. Searches were made by the investigating agency after obtaining due approval from the competent authority and under relevant provisions of law. Thus, the instant petition is liable to be dismissed.
5. Whereas, learned counsel appearing on behalf of the petitioner submitted that Rs.279 crores credited to the personal account of the applicant from the accounts of the Companies i.e. M/s Sun Flame Trading Pvt. Ltd., M/s Blue Star International Private Ltd. & Atlantic International Trading Pvt. Ltd., from 2017 to 2020, were further debited to the accounts of the Companies. Such receipt and transfer of the aforesaid amount is duly reflected in the Bank statement of the applicant as Annexure A- 29, and which is further corroborated with the Audited Ledgers of the Company which are annexed herewith as Annexure A-30. The reason for the aforesaid transfer was that the Companies were not generating handsome profit and with a sole purpose to earn interest, the monies received from the foreign buyers were transferred from the current accounts of the Companies to the saving accounts of the applicant for few days, and finally after generating interest, it was again transferred to the current account of the Companies. Moreover, the applicant has paid in
