Indian Tax Solution

Sessions court denies bail to seven traders

The Sessions Court on Friday rejected bail application of five and interim bail plea of two traders accused of generating fake invoices worth Rs 1,000 crore to evade payment of GST between June and September of this year. The scam was busted by enforcement wing of the GST department by conducting several raids across Deesa, Gondal, Unjha and other towns after it came to light that fake invoices were generated to evade GST while claiming Input Tax Credit (ITC) by certain traders.

The court, while turning down their application, observed that the accused had perpetrated a serious offence that jeopardised national economy and ran into more than Rs 1,000 crore. Earlier, Ravi Vaja, Vimal Bhut, Amit Thakar, Mayur Thakkar, Anil Bhut were arrested and sent to jail. They had applied for bail in the metro courts which was rejected.

Later, the accused approached the sessions court, which too turned down their bail pleas. They argued that they were innocent, wrongly implicated, paid their taxes and had receipts to prove it. They also assured the court that if granted bail they will cooperate in ongoing investigation while adhering to all the conditions laid down by the court.

However, the special public prosecutor Sudhir Gupta, while opposing their pleas, told the court that the scam was well-thought of and the accused had evaded tax running into crores thereby impacting the economy. Gupta argued that under the law bail could be granted only if the tax evasion was less than Rs 5 crore while the accused had evaded GST much more than Rs 5 crore.


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