New Delhi (Agency): The Delhi High Court, in a significant ruling, has recognized the severity of issuing fraudulent invoices and e-way bills for the purpose of evading Goods and Services Tax (GST). It has classified this as an economic offense that results in financial losses to the public treasury.
Justice Amit Bansal, presiding over the case, has declined anticipatory bail to a chartered accountant who stands accused of forgery and GST evasion through the creation of fictitious invoices attributed to non-existent entities.
The origins of the case can be traced back to a complaint filed by Umang Garg, who alleged that the chartered accountant had induced him to procure goods or materials through a variety of firms, only to later discover that these firms were non-existent entities.
Garg further asserted that the chartered accountant had instructed him to make payments for these goods into different bank accounts held under various names, ultimately defrauding him of a substantial amount totaling Rs 2,81,99,475, which also included unpaid GST.
In rejecting the plea for anticipatory bail, the court underscored the seriousness of the matter. It took note of the fact that the chartered accountant had sought interim protection by proposing to resolve the dispute through mediation proceedings, which implied an intention to retain that protection during the mediation process.
However, after the mediation proceedings concluded as “not-settled,” the court deemed it necessary to assess the application on its merits.
The court also highlighted that the evidence gathered during the investigation indicated that the chartered accountant was actively managing the companies in question and had received a significant sum of Rs. 3.5 crores from Garg.
Considering these findings and the grave nature of the allegations, which encompass forgery and GST evasion through the fabrication of fraudulent invoices, the court found no valid grounds for granting anticipatory bail to the chartered accountant. Justice Bansal also revoked the interim protection that had been previously extended to the chartered accountant.
