COMMON ORDER

(The case has been heard through video conference)

Totally, there are two accused and the petitioners are arrayed as A1 and A2. The petitioners, who were arrested and remanded to judicial custody on 07.01.2021 for the offence punishable under Sections 132(5) and 132(1) of CGST Act, 2017, in F.No.INV/DGGI/CZU/GST/01/2021 on the file of respondent in R.R.

Nos.1 & 2 of 2021 respectively seek bail.

2. The case of the prosecution is that, the petitioners are Accountant and Managing Director of a company, by name M/s.Sri Marg Human Resources Pvt Ltd. The said company is a man power agency, engaged in supplying manpower to various companies and industries. The allegation is that the petitioners' company being engaged in supply of manpower to various companies and industries, they have received considerations from various customers. The petitioners company is having two G.S.T. accounts, one in the State of Tamil Nadu and in the State of Andhra Pradesh. The petitioners have received invoices without actual receipt of any services/goods from certain companies and from non-existent firms and further availed and utilised fraudulent and ineligible input tax credit passed on by such bogus/non-existent firms to offset their output GST liability, which is otherwise required to be paid in cash, thereby caused revenue loss to the Government to the tune of Rs.21.56 crores. Hence, a criminal case has been registered against the petitioners and they were arrested and remanded to judicial custody on 07.01.2021 respectively. Now, the petitioners has filed these petitions seeking bail.

3. The learned counsel appearing for petitioners would submit that they are innocent persons and the petitioners' company is engaged in supplying manpower to various industries and the company, which has received manpower has to pay the input tax, in fact, they have also received receipts. Subsequently, they came to know that those companies have failed to deposit that amount. The petitioners bonafidely produced all those receipts and claimed output tax. Later on, the petitioners came to know that the company has failed to pay input tax liability. Hence, they were arrested and remanded to judicial custody on 07.01.2021. He would submit that they are innocent persons and they are no way connected with the offence as alleged in the complaint. He would submit that they have been falsely implicated in the present case. On instructions, he would also submit that without prejudice to their rights and contentions, they are ready to pay the entire alleged tax liability and require some time. Due to the Covid-19 pandemic situation, now the company is unable to mobilise funds immediately and required breathing time, hence, they seek time for payment. He would also submit that already the petitioners have paid a sum of Rs.2.5 crores and now, three bank accounts belong to the petitioners company had been freezed by the department, wherein, around Rs.3.5 crores has been in deposit, and the petitioners are not in a position to operate the account. In the event of department has defreezing the accounts, they are ready and willing to pay a sum of Rs.3 crores immediately after releasing them on bail. Mr.A.Ganesh, learned counsel has also submitted that the petitioner would pay the remaining amount in four equal monthly instalments till December 2021.

4. Mr.N.P.Kumar, learned Additional Public Prosecutor appearing for the respondent would vehemently opposed this petition on the ground that, the petitioners have deliberately and fraudulently utilised the input tax by producing bogus vouchers and receipts. He would submit that the investigation clearly reveals that all those companies are non-existent companies and the petitioners have evaded tax to the tune of Rs.21.56 crores, the petitioners should necessarily pay the entire amount. Accordingly, he has opposed to grant bail to the petitioners.

5. I have heard and considered the rival submissions made by the learned counsel appear