sec 406/438

Querist : Anonymous (Querist) 20 January 2010 This query is : Resolved
A supplied a motor component of Rs.60/- each to B,wholly export unit in the lots of 200 pcs upto 31.3.03 with proper excise/sales tax bills and received payment by cheque.B stopped business with A on 31.3.03 and started buying the product from third party. All export was on LCs, payment received on presentation of documents on despatch, thereafter claiming refund of excise and sales tax input in export on furnishing all purchase invoices. In 2009, after 6 years, A comes to B with some parchies , not proper challans, bearing B company stamp and signature of some ex-employees claiming that he supplied 80000 pcs worth Rs. 50 lacs during 2003-2006 just on approval without raising any bills of 200 odd lots supplied during this period and also forgot to ask for payment or any communication.B feeling blackmailed refused claim and A on the basis of few such parchies managed to file FIR u/s 406. Session judge relying on these parchies and without appreciating business modus operandi declined bail and high court also calling it as white collar offence asked B to deposit of whole of 50 lacs claimed in the court to get bail. Now SLP pending. cOULD you please help with your considered opinion with case laws.

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