High Court Allows Bail in Tax Evasion Case, Mandates Rs. 2 Crore Deposit and Personal Bonds Under Section 439 Cr.P.C.

HC granted bail in tax evasion case under Section 439 Cr.P.C., ordering each petitioner to deposit Rs. 2 Crores as condition. The court allowed bail applications while emphasizing the deposit does not indicate any opinion on case merits. Personal bonds and sureties were mandated, with trial court directed to record deposit before attesting bail bonds.

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Issues:
Bail application under Section 439 Cr.P.C. arising from a case under Sections 132(1)(c)(f)(h) & (1) of Central Goods & Service Tax Act, 2017.

Analysis:
The petitioners sought bail, claiming false implication and lack of show cause notices. They argued the offence is triable by a Magistrate, compoundable, and carries a maximum punishment of 5 years. They referenced various judgments to support their case, emphasizing the delay in trial and lack of notices. The respondent opposed, alleging tax evasion by the petitioners, who benefited from input tax credit amounting to Rs. 11.30 Crores. The respondent distinguished the case from that of another accused, highlighting the need for a substantial deposit similar to a previous court directive.

The court acknowledged the tax evasion by the petitioners and the significant input tax credit amount involved. Drawing parallels to a previous case where a substantial deposit was ordered, the court decided to grant bail to the petitioners with a condition to each deposit Rs. 2 Crores under protest. The court emphasized that this decision does not reflect any opinion on the case's merits. The bail conditions included personal bonds and sureties, with directions for the trial court to record the deposition of the deposit before attesting bail bonds.

In conclusion, the bail applications under Section 439 Cr.P.C. were allowed, and the accused-petitioners were granted bail upon fulfilling the specified conditions. The court directed the trial court to ensure the deposit of Rs. 2 Crores from each petitioner and instructed the placement of a copy of the order in all connected files.

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