*HC denied relief from arrest as the assessee was ...

*HC denied relief from arrest as the assessee was involved in fraudulent trading under GST* Ashish Jain v. Union of India - [2019] 110 taxmann.com 98 (Bombay) The assessee filed a writ petition before the High Court of Bombay for relief from arrest. The revenue contended that the assessee had floated many fictitious companies and defrauded the government by raising fake invoices and availing Input Tax Credit without any supply of goods. Hence, the assessee was involved in fraudulent trading which is a cognizable offense under GST and, therefore, summon was rightly issued. The Honorable Court observed that the revenue authorities were investigating cognizable offenses under GST. Further, the Honorable Apex Court in the case of Union of India v. Sapna Jain - [2019] 106 taxmann.com 212 (SC) dated 29-5-2019 made it clear that the High Courts would not grant pre-arrest bail to assessee involved in circular trading. The Honorable Court was bound by the order of the Apex Court passed on 29-5-2019, and, hence, denied relief from arrest to the assessee involved in fraudulent trading.