JUDGMENT :

1. By this application filed under Section 439 of the Code of Criminal Procedure, the applicant has prayed to release him on regular bail in connection with the Memorandum of Arrest dated 30.11.2021 in File No. DCST/Enf.-10/Rajkot/AC-3/UT LLP/2021-22 for the alleged offences under Section 132(1)(c) of the Gujarat Goods and Services Tax Act 2017 (for short, 'the GGST Act") and Central Goods and Services Tax Act 2017 (for short, "the CGST Act") punishable under Section 132(1)(i) of the GGST Act and CGST Act.

2. Mr. Y. S. Lakhani, learned Senior Advocate appearing with Mr. Pankaj D. Rachchh and Mr. Rahul Dholakia for the applicant, submitted that the applicant herein is a designated Partner of one "Utkarsh Ispat LLP", which is engaged in the business of purchasing mild steel scrap and thereafter, converting it into mild steel Billet. On 19.11.2021 the respondent No.2 conducted a search and seizure operation at the factory and office premises of the LLP as also at the residence of the applicant on the ground that several purchase transactions had been made from fictitious entities. It was alleged that the applicant had shown fake purchases from 24 fictitious entities to the tune of Rs.172.36 Crores and had thereby, availed illegal Input Tax Credit to the tune of Rs.31.02 Crores.

2.1 It was submitted by the learned Senior Advocate that the applicant is the Managing Director of the firm and is looking after its day-to-day affairs. The Office of respondent No.2 authority had issued summons to the firm in the month of December 2021 and in response thereof, the firm gave its reply along with all necessary documents. The applicant was questioned on 19.11.2021 and 20.11.2021 and was, thereafter, served with the arrest memo dated 30.11.2021. In the interregnum, the applicant had suffered chest pain and was, therefore, admitted to the Hospital in Rajkot on 21.11.2021. On the next day, i.e. on 22.11.2021, the applicant was shifted to the Gujarat Cancer Institute, Ahmedabad as he was diagnosed with Prostrate Cancer.

2.2 Learned Senior Advocate Mr. Lakhani took the Court through the documents on record to submit that all the relevant documents relating to the goods as also the vehicles along with their photographs were made available to the tax authority. The vehicles loaded with the goods had approached the way-bridge and after following due process, the goods were unloaded in the factory premises. It is alleged against the applicant that out of the 270 firms with which the applicant was doing business, 41 firms were shell companies and that false/fabricated documents were generated for the purpose of availing ineligible Input Tax Credit. However, from amongst the said 41 firms, the applicant's firm had received goods in 1,145 different Trucks, which had undertaken 4,896 trips in all for delivering the goods.

2.3 It is further submitted that goods worth Rs.225 Crores were received with genuine legal documents, which are also reflected on the Government portal and the applicant's firm has paid Rs.40 Crores as GST through the banking channels. It is contended that had the applicant's firm generated false/fabricated documents for availing illegal Input Tax Credit, then 41 firms should have been arraigned as accused. If the applicant's firm has committed fraud by receiving kick-backs through 'Aangadia' sources, then the same is required to be fortified from the statements of such 'Aangadia' sources. The statements of the transport service providers should also have been recorded to substantiate the allegation that the goods were not actually transported to the factory premises of the applicant. Only those goods, which were tested in Laboratories, were delivered at the factory premises of the applicant and E- way bills were generated only in respect of such goods. Thus, at the factory premises of the applicant, a complete system was in place in respect of every consignment of goods that arrived at the factory.

2.4 Learned Senior Advocate Mr.