The severity of economic offences, the need for a different approach in bail matters, and the larger interest of the public and State in such cases influenced the court's decision.

JUDGMENT

S. K. Panigrahi, J. - The petitioner, presently in custody, has filed the instant bail application under Section 439 of the Code of Criminal Procedure, 1973 corresponding to 2(c) CC Case No.03 of 2020 pending in the Court of the learned Judicial Magistrate First Class (Rural), Cuttack. The petitioner herein is the accused in connection with alleged commission of offences punishable under Section 69 read with Sections 132(1)(b), 132 (1)(c) and 132(1)(i) of the Odisha Goods and Services Tax Act, 2017. Prior to the instant application, the petitioner had previously approached the court below vide Bail Application No.1093 of 2020 arising out of 2(c)CC Case No.03 of 2020 which was rejected on 25.01.2021.

2. Bereft of meticulous details, the facts of the matter canvassed are that a large number of fraudulent business transactions were made using several fictitious firms, including, M/s. Nayak Enterprises, M/s. Sahoo Enterprises, M/s. Mohanty Sales Agencies, M/s. Maa Bhawani Enterprises, M/s. Binash Enterprises, M/s. Sangeet Hotels and others. These several functionally vacuous entities were found to have been fraudulently registered under the OGST Act, 2017 by the present petitioner in collusion with other persons. Several persons have been beguiled into lending their name and documents for the purpose of registration of these 12 manikin firms on the false pretext of providing them gainful employment, arranging loans from commercial banks or providing them with monthly stipend. These identity documents have been mis- appropriated for the purpose of obtaining registration certificate under the GST Act in order to masquerading fake business transactions with an intention to defraud the state exchequer.

3. Such a modus operandi of creation of these dummy and sham firms, has been highlighted on numerous occasions in the past. The petitioner and other accused were predominantly engaged in pedalling of bogus input tax credit secured on the strength of fake and fabricated invoices without supply of any physical goods to other such existing and non-existing firms, thereby enabling the recipients to avail and utilize the same while discharging tax liabilities. These fake and fraudulent transactions have, amongst others, caused huge loss to the State exchequer to the tune of about Rs. 42.36 crores.

4. It is alleged that to evade payment of tax, the petitioner in collusion with others arranged fake purchase invoices from non-existent business entities created and controlled by them. While effecting sales of the goods purchased out of account without payment of tax they have taken adjustment of the tax mentioned in the fake purchase invoices. Similarly, it is also alleged that they have also sold goods in the name of the fake firms and passed on bogus ITC running into crores of rupees to recipients both within and outside the State by raising fake sale invoices. The bogus ITC availed and passed on by the petitioner in collusion with others in the name of 12 fictitious entities aggregates to an amount of Rs. 42.36 crores and therefore they were all involved in willingly defrauding the State exchequer. On the basis of the aforesaid information, a case was registered under section 69 r/w Sec. 132(1)(b), 132 (1)(c) and 132(1)(i) of the OGST Act, 2017 and investigation was commenced.

5. As seen from the records, during the search, several incriminating documents, containing business transactions of such business entities, were unearthed and seized with due acknowledgement. The Petitioner was subsequently summoned by the authorities. On being subjected to interrogation and, it appears that the petitioner, initially denied any sort of involvement in any of the fictitious firms. The petitioner also categorically denied having any kind of financial, business or personal relationship with the other accused. However, upon subsequently being confronted with documents recovered from the whatsapp and email of the other accused, the petitioner has admi