Delhi High Court: Issuing fake GST invoices, e-way bills economic offences

The Delhi High Court has recognized the gravity of issuing counterfeit invoices and e-way bills to evade GST, categorizing it as a significant economic offense that harms the public treasury.

Justice Amit Bansal has denied anticipatory bail to a chartered accountant facing allegations of forgery and GST evasion through the fabrication of fake invoices under fictitious entities.

This case originated from a complaint by Umang Garg, who asserted that the chartered accountant had induced him to make purchases through various non-existent firms, only later revealed to be fictitious.

Garg further alleged that the accountant had directed him to deposit payments for these goods into various accounts under different names, resulting in a total defrauding amount of Rs 2,81,99,475, inclusive of unpaid GST.

In rejecting the anticipatory bail plea, the court emphasized the seriousness of the situation. It noted that the accountant had sought interim protection by proposing mediation proceedings, suggesting an intention to maintain this protection throughout the mediation process.

However, once the mediation proceedings failed to reach a settlement, the court found it necessary to assess the application based on its merits.

The court also highlighted that evidence collected during the investigation indicated that the accountant was actively managing the implicated companies and had received a substantial sum of Rs. 3.5 crore from Garg.

Considering these findings and the gravity of the allegations, including forgery and GST evasion through false invoices, the court found no grounds to grant anticipatory bail to the chartered accountant.

Justice Bansal additionally revoked the previously granted interim protection for the accountant.