JUDGMENT/ORDER :

1. The present application has been filed under Section 439 of the Code of Criminal Procedure for regular bail in connection with the offence being File No.DGGI/AZU/Gr.E/12(4)510/2020-21 registered with the office of DGGI, AZU, Ahmedabad for the offences punishable under sections 132(1)(b), 132(1)(c) read with section 132(1)(i) and section 132(5) of the Central Goods & Services Act, 2017 and section 132(1)(b), 132(1)(c) read with section 132(1)(i) and section 132(5) of the Gujarat GST Act, 2017 and section 120(B) of the IPC.

2. The facts arising out of the said case in nutshell, are narrated hereinbelow:

2.1 The officers of the Directorate General of GST Intelligence, Zonal Unit, Ahmedabad, (hereinafter referred to as 'DGGI' for short), which works under Central Board of Indirect Tax and Customs (CBIC) under the Ministry of Finance, Government of India, had got intelligence that certain firms were operating only on paper and passing on inadmissible Input Tax Credit (hereinafter referred to as 'ITC' for short) by issuing invoices only, without any actual supply of goods mentioned therein. An inquiry was conducted against one such firm M/s. Ronak Traders, which confirmed that the unit was non-existing and no eligible ITC was available with the firm, as its GSTR-2A was nil and M/s. Ronak Traders passed on fraudulent ITC of Rs.10.36 crore to S.K. Traders by showing entire supply to them in their GST returns. M/s. S.K. Traders was also found to be non- existing, which in turn, has passed on ITC of Rs.10.29 crore to the two firms M/s. Alina Traders having legal name as Mohsin Salimbhai Qureshi having GSTIN 24AAIPQ1079MIZB and M/s. Glaxy Traders having legal name as Mohsin Salimbhai Qureshi having GSTIN 24AAIPQ1079M2ZA, both companies having business at Ahmedabad. The said two firms are proprietorship firms of Shri Mohsin Salimbhai Qureshi, the present applicant, who was found indulged in receiving and passing of fraudulent ITC to their buyers by way of creating a chain of bogus firms, without physical receipt and supply of goods.

2.2 It is stated in the memo of arrest that as per the investigation two firms under the proprietorship of the present applicant - Mohsin Salimbhai Qureshi namely M/s. Alina Traders and M/s. Galaxy Traders have availed and utilised ITC of Rs.8.18 crore and Rs.2.11 crore respectively on the basis of invoices issued by M/s. S.K. Traders, which is non-existing firm which in turn received Rs.10.36 crore from another non-existent firm i.e. M/s. Ronak Traders which has no GSTR-2A, without receipt of goods mentioned therein and since the entire payment has been made through utilisation of ITC which was not legally available to both these firms, and therefore no tax has been paid in respect of the invoices issued by these two firms and therefore the availment of ITC of Rs.10.29 crore was not admissible as per section 16(2)[(b) & (c)] of CGST Act, 2017.

2.3 The applicant was arrested on 01.09.2021 under the provisions of section 69 of the Central Goods and Services Tax Act, 2017 and produced before the Court of Additional Chief metropolitan Magistrate, Ahmedabad, thereby he was sent in judicial custody. The applicant thereafter preferred bail application under the provisions of section 437 of the Code before the court of learned Magistrate, which came to be rejected vide order dated 14.09.2021. Against the same, the applicant approached the Court of learned City & Sessions Judge, Ahmedabad by preferring Criminal Misc. Application No.7105 of 2021, however, the same also came to be rejected vide judgment and order dated 11.10.2021.

2.4 It is stated that, after completion of investigation in connection with the present offence, a complaint came to be filed before the Court of learned Magistrate on 29.10.2021 for the offences punishable under sections 132(1)(b), 132(1(c) read with section 132(1)(i) & 132(5) of the CGST, 2017 and section 132(1)

(b), 132(1)(c) read with section 132(1)(i) & 132(5) of the Gujarat