Delhi High Court Denies Anticipatory Bail In Fake GST Case Involving Misuse Of PAN Cards
The Delhi High Court on 20 August dismissed the anticipatory bail plea of a man accused of creating fake Goods and Services Tax (GST) entities by allegedly misusing the Permanent Account Numbers (PAN) cards and other credentials of unsuspecting individuals.
Justice Girish Kathpalia observed that filing fake Goods and Services Tax (GST) returns by misusing the PANs and other credentials of innocent persons has serious consequences for victims and “tremendous ramifications” for the country's economy. The Bench held:
“Filing of fake GST returns, that too by misusing the PAN Cards and other credentials of innocent public persons has extremely serious consequences not just on the persons whose particulars have been hacked by the accused persons from different fora, but also has tremendous ramifications on economy of the country. Grant of anticipatory bail in such offences is not appropriate.”
The case arose from a complaint by a woman who discovered, after receiving a notice from the Income Tax Department, that two GST firms had been linked to her PAN card despite her never having applied for GST registration or having any knowledge of the businesses. She alleged that her PAN card had been misused to fraudulently obtain GST registrations and conduct illicit financial activities in her name.
The prosecution alleged that the investigation revealed that Raj Kumar, the accused was involved in generating GST numbers for fake entities using PAN cards and other credentials of innocent members of the public.
Further, that he provided the fake GST numbers, along with associated mobile phone numbers and email IDs, to a co-accused for generating fake invoices and e-way bills. It also alleged that clients made payments directly to him.
The Bench found that custodial interrogation of the accused was justified in view of the nature of the allegations.
Accordingly, the High Court denied anticipatory bail.
For Applicant: Mr. Wiquar Ahmad, Advocate
For Respondent: Mr. Amit Ahlawat, APP for State with SI Ravi Rana, PS Cyber, Outer North District, Delhi