CUTTACK: The Orissa high court has granted bail to Atul Bansal, who allegedly masterminded GST fraud worth Rs 138 crore through 20 fictitious business entities.
The GST enforcement wing in the state had arrested Bansal on October 25, 2019, for leading a racket that used fake bills to claim input tax credit, and causing revenue loss of Rs 138 crore.
Bansal and his aides used fake bills to claim input tax credit, an option in GST that allows traders to claim credit for taxes paid on purchase. The offence is cognizable under GST Act and, on conviction, can lead to imprisonment for up to five years. The single-judge bench of Justice B P Routray held, “When the investigation has already been completed, I do not feel any requirement of further detention of the petitioner in custody keeping in view the term of maximum punishment vis-à-vis the period of detention.”
“Accordingly, it is directed that the petitioner be released on bail in the aforesaid case on such terms and conditions to be fixed by the trial court,” justice Routray said in his March 6 order, a copy of which was available on Thursday.
In his order, the judge stipulated that Bansal should not leave the jurisdiction of Sundargarh district without prior permission of the lower court and should not dissuade directly or indirectly by way of inducement, threat or promise any witness acquainted with the facts of the case from disclosing such facts before the court or tamper with the evidence while on bail.
According to official records, investigations had revealed that Bansal along with others had created 20 fictitious firms in the names of housewives, taxi drivers, daily wage labourers, plumbers and unemployed youth.
They obtained the IDs after promising them gainful employment, registered the dummy firms and showed purchase of iron and steel goods worth Rs 603 crore and sale of Rs 743 crore without paying tax. They passed on the bogus input tax credit worth Rs 138 crore to recipients both inside and outside Odisha.
The GST enforcement wing in the state had arrested Bansal on October 25, 2019, for leading a racket that used fake bills to claim input tax credit, and causing revenue loss of Rs 138 crore.
Bansal and his aides used fake bills to claim input tax credit, an option in GST that allows traders to claim credit for taxes paid on purchase. The offence is cognizable under GST Act and, on conviction, can lead to imprisonment for up to five years. The single-judge bench of Justice B P Routray held, “When the investigation has already been completed, I do not feel any requirement of further detention of the petitioner in custody keeping in view the term of maximum punishment vis-à-vis the period of detention.”
“Accordingly, it is directed that the petitioner be released on bail in the aforesaid case on such terms and conditions to be fixed by the trial court,” justice Routray said in his March 6 order, a copy of which was available on Thursday.
In his order, the judge stipulated that Bansal should not leave the jurisdiction of Sundargarh district without prior permission of the lower court and should not dissuade directly or indirectly by way of inducement, threat or promise any witness acquainted with the facts of the case from disclosing such facts before the court or tamper with the evidence while on bail.
According to official records, investigations had revealed that Bansal along with others had created 20 fictitious firms in the names of housewives, taxi drivers, daily wage labourers, plumbers and unemployed youth.
They obtained the IDs after promising them gainful employment, registered the dummy firms and showed purchase of iron and steel goods worth Rs 603 crore and sale of Rs 743 crore without paying tax. They passed on the bogus input tax credit worth Rs 138 crore to recipients both inside and outside Odisha.
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