2020 (4) TMI 665 - HC - GST

Court denies interim bail in GST evasion case citing COVID-19 risks, financial loss, and penalty severity.

The Court dismissed the petition for interim bail due to COVID-19 concerns amidst allegations of causing a loss to the State-Exchequer by evading GST ... Grant of interim bail on the prevalent condition of spread of COVID-19 Virus - evasion of payment of GST - HELD THAT:- The Hon'ble Supreme Court, in IN RE : CONTAGION OF COVID 19 VIRUS IN PRISONS [2020 (4) TMI 572 - SC ORDER] had directed all the States/Union Territories to consider as to which of the prisoners 'may' be released on interim bail or parole during the pandemic so as to decongest the jails and to prevent outbreak of COVID-19 virus in prisons. Pursuant ot said directions a Committee was constituted in State of Punjab, headed by Chairman, Punjab State Legal Services Authority and certain guidelines were laid for release of certain categories of prisoners. The present case is a case where the allegations against the petitioners are in respect of section 132 of GST Act 2017 which is punishable for a maximum sentence of 5 years and that as per the policy cases of under trials charged with offences punishable for a sentence of up to 7 years could be considered. However, the offence assumes gravity in view of the colossal amount involved in the present case which is ₹ 20 crores appx. and is certainly a factor to be borne in mind while considering the release of the petitioner on interim bail. Infact the allegations are to the effect that the petitioners had forged bills and other documents in furtherance of their designs to cause loss to State Exchequeuer which prima-facie would also attract an offence punishable under section 467 IPC which is punishable with imprisonment for life. This Court also draws strength from the fact that State of Bihar has chosen not to release any of the prisoners as the jails are not congested and there was no reported case of corona virus in the jails and the said fact was duly noticed by Supreme Court in its order dated 13.3.2020. Since the Nabha Jail already stands decongested and there is no reported case of COVID-19 within the premises of jail, therefore keeping in view the nature and gravity of offence and the amount involved this Court does not deem it appropriate to grant interim bail to the petitioner. Application dismissed. Issues involved:1. Petition for grant of interim bail due to COVID-19 concerns amidst allegations of causing loss to State-Exchequer by evasion of GST payment.2. Interpretation of Supreme Court orders regarding release of prisoners on interim bail or parole during the COVID-19 pandemic.3. Consideration of nature and gravity of offense, amount involved, and absence of reported COVID-19 cases in jail premises for granting interim bail.Detailed Analysis:Issue 1:The petitioners sought interim bail due to COVID-19 concerns amid allegations of causing a loss to the State-Exchequer by evading GST payment of approximately Rs. 20 crores. The petitioners argued that a policy for release of prisoners had been framed by the State Government due to the pandemic conditions, allowing under-trials facing offenses punishable for up to 7 years to be released on bail. However, the State counsel opposed the petition, emphasizing the significant amount involved in the case and the absence of reported COVID-19 cases in the jail premises, indicating no immediate threat.Issue 2:The Supreme Court had directed States to consider releasing certain prisoners on interim bail or parole to decongest jails and prevent COVID-19 outbreaks. The Court clarified that the release of prisoners was not compulsory and should be based on factors such as the nature of the offense, severity, and sentence length. The purpose was to assess the situation in prisons to manage the spread of the virus effectively. The Court highlighted that the release decision should be guided by relevant factors and not as a blanket measure for all prisoners.Issue 3:Considering the gravity of the offense, the amount involved, and the absence of reported COVID-19 cases in the jail premises, the Court dismissed the petition for interim bail. The Court noted that the allegations against the petitioners involved forging documents to cause a significant loss to the State-Exchequer, potentially attracting severe penalties. With the jail already decongested and following necessary precautions for new inmates, the Court deemed it inappropriate to grant interim bail based on the current circumstances. The Court emphasized that the dismissal of the interim bail application would not impact any future application for regular bail on merit, ensuring a fair consideration of bail requests.