Court grants bail in GST evasion case with conditions

The District/Sessions Court granted bail to the applicant/accused in a case involving GST evasion through fake invoices. The court considered the accused's cooperation with the investigation, retracted statement, and deposit made under protest. Despite opposition from the department citing witness tampering risks, the court noted the partial repayment, judicial custody, and imposed conditions on bail. The accused was required to furnish a bond, cooperate with investigations, refrain from tampering with evidence or witnesses, attend court proceedings, and seek court permission before leaving the country.

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Issues Involved: Bail application in a case involving evasion of GST through fake invoices.

Analysis:
In the judgment delivered by the District/Sessions Court Patiala House Court, the bail application of the applicant/accused was considered. The applicant's counsel argued that the applicant had been falsely implicated and had cooperated with the investigation. It was highlighted that the accused was coerced into giving a statement, which was later retracted. The counsel contended that the accused was wrongly charged under the CGST Act without conclusive evidence of GST evasion through bogus ITC. Additionally, it was mentioned that the accused had deposited a significant amount under protest to demonstrate good faith. The applicant's counsel requested bail for the accused.

On the contrary, the Senior Standing Counsel for the department opposed the bail application, alleging that the accused fraudulently availed Input Tax Credit (ITC) amounting to Rs. 7.90 crores based on fake invoices. The department's counsel argued that releasing the accused on bail could lead to witness tampering due to the ongoing investigation at an initial stage.

The court observed that the accused was allegedly involved in tax evasion by passing inadmissible ITC based on fake invoices. It was noted that the accused had already deposited a portion of the alleged amount and had been in judicial custody since a specific date. Considering the circumstances, the court granted bail to the applicant/accused on the condition of furnishing a personal bond and surety, joining the investigation when required, refraining from tampering with evidence or influencing witnesses, and attending all court proceedings. The accused was also prohibited from leaving the country without prior court permission.

Ultimately, the bail application was disposed of, and the court directed the concerned Jail Superintendent to be informed of the order.

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