Yabi Gamlin vs. The State Of Assam And Anr
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The applicant, Yabi Gamlin, sought pre-arrest bail under Section 438 Cr.P.C. apprehending arrest in BI (E.O)P.S. Case No. 14/2023, registered for offences under Sections 120(B)/419/420/468/471 of the IPC. The case originated from an FIR lodged on June 19, 2023, by an Assistant Commissioner of Taxes. The FIR alleged that M/s Amit Traders, a non-existent dealer located at an OYO Hotel in Guwahati, purchased taxable goods worth Rs. 32.35 Cr. from M/s Shree Ram Enterprises, registered in Arunachal Pradesh, with a tax implication of Rs. 5.91 Cr. M/s Amit Traders purportedly sold these goods on the same date to other taxpayers in Arunachal Pradesh. Further inquiry revealed that M/s Shree Ram Enterprise wrongfully claimed Input Tax Credit (ITC) of Rs. 116 Cr., out of which Rs. 5.91 Cr. was passed on to M/s Amit Traders, who then passed it to other firms in Arunachal Pradesh. M/s Amit Traders allegedly obtained GST registration using false documents to defraud government revenue.
Held
The Court made the interim order dated December 1, 2023, granting pre-arrest bail to the applicant, absolute in the same terms and conditions. The Court reasoned that based on the materials collected so far in the case diary and the progress of the investigation, the applicant's custodial interrogation did not appear to be warranted. The Court also took into account the fact that the applicant had been cooperating with the investigating agency. The Court found that while the I.O. had collected some materials, they could not ascertain if the applicant had knowingly received fake ITC. Given the applicant's cooperation and the current stage of the investigation, the Court concluded that granting pre-arrest bail was appropriate. The operative direction was to make the interim order absolute.
Key Issues
1. Whether the interim order granting pre-arrest bail to the applicant should be made absolute, considering the applicant's cooperation with the investigation and the materials collected so far. (Mixed question of law and fact) Petitioner's Arguments: Mr. G. Phukan, learned counsel for the applicant, argued that the applicant was previously granted pre-arrest bail by this Court on December 1, 2023. Pursuant to this order, the applicant appeared before the Investigating Officer (I.O.) and has been cooperating with the investigation. Therefore, the interim order should be made absolute on the same terms and conditions. Revenue's Arguments: Mr. P.S. Lahkar, learned Addl. Public Prosecutor for the State, submitted that the I.O. has collected some materials supporting the FIR allegations. However, the I.O. has not been able to ascertain whether the applicant knowingly received fake ITC. Despite the materials available in the case diary, Mr. Lahkar opposed the petition.
Sections Cited
Section 438 Cr.P.C.
AI-generated summary — verify with the full judgment below
Cause title — parties, addresses and appearances
ORDER Date : 02-02-2024 Heard Mr. G. Phukan, learned counsel for the applicant. Also heard Mr. P. S. Lahkar, learned Addl. Public Prosecutor for the State respondent. Apprehending arrest in connection with BI (E.O)P.S. Case No. 14/2023, under Sections 120(B)/ 419/ 420/ 468/ 471 of IPC, corresponding to G.R.Case No 4425/2023, this application under Section 438 Cr.P.C. has been preferred by the applicant, namely, Yabi Gamlin for grant of pre-arrest bail. It is to be noted here that the aforementioned case has been registered on the basis of an FIR lodged by Sonaram Langthasa, Assistant Commissioner of Taxes, Guwahati on 19.6.2023. The essence of allegation made in the FIR is that M/s Amit Traders said to have purchased taxable goods from M/s Shree Ram Enterprises, registered in Arunachal Pradesh, amounting to Rs. 32.35 Cr. with tax implication amounting to Rs. 5.91 Cr. And the entire purchase was made by M/s Amit Traders from the said tax payer of Arunachal Pradesh on 31.03.2023, in 216 numbers of invoices and M/s Amit Traders have declared to have sold the goods, so purchased from Arunachal Pradesh on the same date to some other taxpayers registered in Arunachal Pradesh and during inquiry it has been found that M/s Amit Traders located at OYO Hotel, Athgaon, Subhas Road, Guwahati, is a non-existent dealer and whereabouts of the proprietor, Shri Amit Sharma is not known and it is also known from further inquiry that M/s Shree Ram Enterprise has wrongfully claimed Input Tax Credit [ITC] amounting to Rs. 116 Cr. out of which Rs. 5.91
Page No.# 3/3 Cr. has been passed on to M/s Amit Traders, who in turn, has passed on ITC to other firms located in Arunachal Pradesh and the M/s Amit Traders has obtained GST registration by furnishing false/fabricated documents with criminal intent to defraud the Government of its legitimate revenue. Mr. Phukan, learned counsel for the applicant submits that the applicant was granted the privilege of pre arrest bail by this Court, vide order dated 1.12.2023 and pursuant to said order, he had appeared before the I.O. and he has been cooperating with the investigating agency and therefore, Mr. Phukan contended that the interim order dated 1.12.2023 may be made absolute in the same terms and conditions. On the other hand, Mr. Lahkar, learned Addl. P.P. submits that the I.O. has collected some materials, in support of the allegation made in the FIR, but, the I.O. could not ascertain as to whether the applicant has knowingly received fake ITC or not and in view of the materials available in the case diary, Mr. Lahkar has opposed the petition. In view of the materials collected so far in the case diary as well as the progress of investigation and also in view of the fact that the applicant has been cooperating with the investigating agency, his custodial interrogation seems to be not warranted herein this case, and accordingly, interim order dated 1.12.2023, is hereby made absolute in the same terms and conditions.
JUDGE Comparing Assistant
Reproduced from the public record of the Gauhati High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.