Manoj Vijay S/O Sh. Prahalad Vijay vs Union Of India
2021 Latest Caselaw 3427 Raj/2

      HIGH COURT OF JUDICATURE FOR RAJASTHAN
                  BENCH AT JAIPUR

   S.B. Criminal Miscellaneous Bail Application No. 8906/2021

Manoj Vijay S/o Sh. Prahalad Vijay, Aged About 36 Years, R/o A-
24, Udhyog Vihar, Road, No. 17, V.K.I. Area, Jaipur 302013
(Raj.) (Currently Confined To Central Jail, Jaipur)
                                                       ----Applicant-Petitioner
                                     Versus
1.Union Of India, Through Superintendent (Anti-Evasion) Central
Goods And Services Tax Commissionerate, Jaipur;


2. Senior Intelligence Officer, Directorate General of GST
Intelligence, Jaipur Zonal Unit, Jaipur, C-62, Sarojni Marg, C-
Scheme, Jaipur
                                                                ----Respondent

Connected With S.B. Criminal Miscellaneous Bail Application No. 8907/2021 Ravindra Vijay S/o Sh. Kailashchand Vijay, Aged About 36 Years, R/o A-85, Shiv Vihar Colony, Raod No. 5, V.K.I. Area, Jaipur- 302013 (Raj.) (Currently Confined To Central Jail, Jaipur)

----Applicant-Petitioner Versus

1. Union Of India, Through Superintendent (Anti-Evasion) Central Goods And Services Tax Commissionerate, Jaipur;

2. Senior Intelligence Officer, Directorate General of GST Intelligence, Jaipur Zonal Unit, Jaipur, C-62, Sarojni Marg, C- Scheme, Jaipur.

----Respondents

For Petitioner(s) : Mr. G.S. Bapna, Sr. Adv. with Mr. R.B. Mathur] Mr. Sameer Jain] Mr. Daksh Pareek] Mr. Arjun Singh] Mr. Nikhil Simlote] Mr. Pranav Malik] Mr. Ayush Sharma For Respondent(s) : Mr. Siddharth Ranka Mr. Kinshuk Jain

(2 of 6) [CRLMB-8906/2021]

HON'BLE MR. JUSTICE MAHENDAR KUMAR GOYAL

Order

04/08/2021 The present bail applications have been filed under Section

439 Cr.P.C. The petitioners have been arrested in Complaint File

No. IV(06) 40/AE/JPR/2021 for offence under Section 132 of the

Central Goods And Services Tax Act, 2017 (for brevity, "the Act of

2017") read with Sub-Section 5 of Section 132 of the Act of 2017.

It is contended by learned counsels for the petitioners that a

case was booked by the Office of Director General of Goods and

Services Tax Intelligence, Jaipur Zonal Unit (for brevity, "DGGI")

on 28.02.2019 against Kapil Vijay and Mohit Vijay. Their

interrogation led to enquiry against M/s. Shri Krishna Enterprises

(for brevity, "M/s. SKE"). During investigation, Mr. Nitin Kumar

Sharma, proprietor of M/s. SKE admitted in his statement

recorded on 10.07.2019 that he has availed Input Tax Credit (for

brevity, "ITC") merely on the basis of the invoices issued by the

firms created and operated by Kapil Vijay and Mohit Vijay.

Ultimately, Mr. Nitin Kumar Sharma was arrested by the DGGI and

on the basis of his statement dated 02.03.2021, the petitioners

came to be arrested on 26.03.2021 and 27.03.2021 respectively

by the office of the Anti-Evasion, Central Goods and Services Tax

Commissionerate, Jaipur (for brevity, "CGST"). Assailing their

arrest, learned counsel for the petitioners contended that once the

DGGI was already seized of the investigation, no investigation

could have been carried out by the CGST and it did not have

jurisdiction to step-in in the midst of the investigation by the DGGI

and effect their arrest. They submitted that only to harass and

(3 of 6) [CRLMB-8906/2021]

victimize the petitioners by involving in two cases instead of one,

the investigation was bifurcated; one qua the M/s. SKE which was

transferred to the DGGI and another qua other firms which were

kept by the CGST. Learned counsels submitted that the wrongful

claim of ITC in the present case has mischievously been inflated to

the tune of ₹ 5.27 crores only to render the offence to be non-

bailable. Learned counsels submitted that the complaint against

them has already been filed, they are not required for further

investigation, are in custody since 26.03.2021 and 27.03.2021

respectively, have no criminal antecedents except the present

complaint filed by the CGST and the another complaint filed by the

DGGI; both involving part of same transaction and prayed for their

release on bail.

Mr. Siddharth Ranka, learned counsel appearing for the

respondent No.1 submitted that there are grave allegations

against the petitioners of wrongfully availing ITC not only to the

tune of ₹ 5.27 crores qua the firms namely M/s. Imran Impex,

Ajmer, M/s. Shri Ram Ispat, Jaipur, M/s. Indra Enterprises, Jaipur,

M/s. Dak Rolls Pvt. Ltd. and M/s. Shakumbhari Steels, Jaipur

which exists on papers only; but, of the ITC to the tune of ₹ 25.27

crores also qua M/s. SKE for which separate complaint has been

filed by the office of the DGGI. Learned counsel submitted that the

investigation is still going on and in view of the gravity of offence

committed by the petitioners, they do not deserve indulgence of

bail.

Mr. Kinshuk Jain, learned counsel appearing for the

respondent No.2, drawing attention of this Court towards the

averments made in the memo of bail applications filed by the

(4 of 6) [CRLMB-8906/2021]

petitioners wherein the offence has been claimed to be bailable

and non-cognizable, submitted that the bail applications deserve

to be dismissed only on account of wrongful averment therein. He

submitted that the petitioners are members of a large racket

which has been found involved in issuing fake invoices in the

neighbourhood of ₹123 crores and ₹85 lacs for which there are

about 160 beneficiaries. He submitted that voluntary statements

of the petitioners dated 25.03.2021 recorded under Section 70 of

the CGST Act, 2017 prove their guilt. Learned counsel submitted

that the petitioners are guilty of destroying the cogent evidence.

He too submitted that the investigation is pending and hence, the

petitioners should not be enlarged on bail.

Heard learned counsels for the parties and perused the

record.

A perusal of the complaint filed by the DGGI before the Court

of learned Chief Metropolitan Magistrate (Economic Offence),

Jaipur against the petitioners reveals that a case was booked by

the office of DGGI on 28.02.2019 against two persons namely

Kapil Vijay & Mohit Vijay for issuance of invoices/bids on

commission without actual supply of goods and thereby facilitating

the wrong availment of ITC to the tune of ₹139.04 crores to

various beneficiaries-firms. The investigation found involvement of

M/s. SKE also in the offence. While CGST was carrying out the

investigation with regard to M/s. Salasar Enterprises for alleged

tax evasion, evasion by M/s. SKE was also found whereupon,

search was carried out at the premises of M/s. SKE which

ultimately led to arrest of the present petitioners. As per the

respondents' case, since with regard to tax evasion by M/s. SKE,

(5 of 6) [CRLMB-8906/2021]

the DGGI was already carrying out the investigation, the same

was transferred to it and rest investigation qua five other firms,

allegedly existing on papers only, was kept by the CGST wherein,

the petitioners were arrested on 26.03.2021 & 27.03.2021

respectively.

This Court notices that a Coordinate Bench of this Court has,

vide its judgment/order dated 02.06.2020, extended the accused

Mohit Vijay and Kapil Vijay @ Kapil Vijayvargiya benefit of bail in

the complaint filed under the provisions of the Act of 2017 by the

DGGI. As is apparent from the contents of complaint filed by the

DGGI against the petitioners, the entire exercise of investigation

which led to arrest of the petitioners, started from the

investigation against Mr. Mohit Vijay & Kapil Vijay against whom

the allegation was of the tax evasion to the tune of ₹139.05

crores. The petitioners are stated to be part of same racket. It has

been admitted by the learned counsels for the Revenue that the

order dated 02.06.2020 has attained finality as it was not assailed

further.

Taking into consideration that the petitioners are in custody

since 26.03.2021 & 27.03.2021 respectively, the complaint has

already been filed against them; indisputably, they are not

warranted for further investigation, the maximum punishment

awardable in such case is of five years, the offence is

compoundable though, none has initiated any proceedings in this

regard and the factum of release of accused persons namely Mohit

Vijay & Kapil Vijay on bail by this Court; but, without expressing

any opinion on the merits of the case, this court deems it just and

proper to enlarge the petitioners on bail.

(6 of 6) [CRLMB-8906/2021]

Accordingly, these bail applications are allowed and it is

directed that accused-petitioners 1. Manoj Vijay S/o Sh.

Prahalad Vijay & 2. Ravindra Vijay S/o Sh. Kailash Chand

Vijay shall be released on bail under Section 439 Cr.P.C. in

connection with afore-mentioned FIR registered at concerned

Police Station, provided each of them shall furnish a personal

bond in the sum of Rs.1,00,000/- (Rupees One Lac only) together

with two sureties in the sum of Rs.50,000/- (Rupees Fifty

thousand only) each to the satisfaction of the trial court with the

stipulation that they shall comply with all the conditions laid down

under Section 437(3) Cr.P.C.

(MAHENDAR KUMAR GOYAL),J

Sudha/1-2

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