2023 (12) TMI 1296 - HC - GST

Businessman Secures Bail in Major GST Fraud Case After Demonstrating No Prior Criminal Record and Completed Investigation

HC granted bail in GST tax evasion case involving allegations of operating fake firms and causing Rs.1046.74 Crores revenue loss. Court considered ... Seeking grant of bail u/s 439 CrPC - Offence punishable under Sections 132(1)(b)(c)(f)(K) of the Central Goods and Services Tax Act, 2017 - HELD THAT:- It appears that petitioner was arrested in the present case on 25.06.2023 and investigation has been completed; there are no antecedents of petitioner and punishment for the alleged offence of evasion of tax is to the extent of five years and fine as prescribed u/s 132(1) of the CGST Act, 2017. The Hon’ble Supreme Court in case of Ratnambar Kaushik [2022 (12) TMI 263 - SUPREME COURT], released the petitioner on bail after undergoing incarceration period of more than four months and in view of fact that conclusion of trial will take some time, Thus considering the period of incarceration of petitioner for about six months, but without commenting on merits of the case, this Court deems it just and proper to release petitioner on bail. Accordingly, the bail application is allowed and it is ordered that accused-petitioner Rishabh Jain S/o Shri Yogesh Jain shall be released on bail provided. Issues Involved:The bail application under Section 439 Cr.P.C. in connection with a case involving offences under Sections 132(1)(b)(c)(f)(K) of the Central Goods and Services Tax Act, 2017.Summary:Issue 1: Implication of Petitioner and Confessional StatementsThe petitioner was implicated in the case and confessional statements were recorded under duress, which he later retracted. The learned Senior Counsel argued for bail citing the completion of investigation, lack of antecedents, and the maximum punishment being five years' imprisonment and fine. Reference was made to a Supreme Court order in a similar case, emphasizing the need for bail in such circumstances.Issue 2: Allegations of Operating Fake Firms and Evasion of GSTThe State and Union of India opposed the bail application, alleging the petitioner's involvement in operating a syndicate of fake firms leading to an evasion of GST amounting to Rs.1046.74 Crores. This was used as a basis to argue against the petitioner's release on bail.Judgment:After considering the arguments from both sides, the court noted the completion of investigation, lack of antecedents, and the nature of the alleged offence with a maximum punishment of five years' imprisonment and fine. Drawing from a Supreme Court precedent, which granted bail in a similar case after a period of incarceration, the court decided to grant bail to the petitioner. The petitioner was ordered to furnish a personal bond and sureties, along with specific conditions to ensure his appearance before the trial court and compliance with legal procedures.This summary provides a detailed overview of the issues involved in the judgment, including the arguments presented by both parties and the court's decision to grant bail to the petitioner based on the circumstances and legal considerations.