Chartered Accountant filing return of non-existent firms should not be released on bail: Says Revenue

K/A GST Professionals: Filing GST returns of non-existent firms may put you in trouble.

High Court granted bail to CA after 17 months of judicial custody.

Petitioner

It is contended by counsel for the petitioner that petitioner is a Chartered Accountant who created the firms on the basis of documents provided by the co-accused. His statement was recorded by the Authorities but was retracted, later as he was subjected to beating, for which a complaint was made by the Department. As per the complaint filed by the Department, petitioner instead of charging ₹ 1500/- per GST return, charged around ₹ 3,500/- per GST return.

However, there is no allegation in the complaint that he has received any amount or any percentage with regard to the wrong input tax credit.

It is contended that as per the charge-sheet, petitioner has only received Rs. 75,000/- for filing GST returns and Rs. 5,000/- per firm for the registration. Offence is triable by First Class Magistrate.

Revenue

Counsel for the Union of India has opposed the bail application. It is contended that petitioner was instrumental in registration of 11 fake firms and these firms have availed input tax credit to the tune of Rs. 146 crores. It is also contended that petitioner was aware as he was filing GST returns of non-existent firms.

It is contended that petitioner is charged for offence for which sentence is provided as five years. In similar type of cases pertaining to Chartered Accountant, bail application was rejected by Co-ordinate Bench of this Court.

High Court

Taking note of the fact that Chartered Accountant has remained in custody for a period of one year and five months and that petitioner is also having a child and also considering the contentions put forth by counsel for the petitioner, I deem it proper to allow the bail application.

This bail application is accordingly allowed.

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