2021 (1) TMI 364 - HC - GST

Dismissal of Petition to Set Aside Court Order for GST Offenses; Clarification on Bail Conditions Violation

The court dismissed the petition seeking to set aside the lower court's order and commit the respondents to judicial custody for alleged GST Act offenses. ... Grant of Bail - Fraudulent availment of Input Tax Credit - evasion of GST - Section 132 of GST Act - HELD THAT:- Even if the allegation made against the respondents are serious and true, I am unable to gather from the petitioner as to any violation by the respondents of the bail conditions imposed vide order dated 21.09.2019. Unless there is violation of the said conditions, it is not permissible to cancel the bail already granted - Even if there is any violation of bail condition, this Court would not have jurisdiction to cancel the bail. Such a violation would have to be brought to the notice of the Court which has granted bail to pass necessary orders thereon. In the event of any additional conditions being required for the purpose of effective investigation, the same could also be brought to the notice of the trial Court for consideration in accordance with law. If at all there is any grievance by the petitioner as regard the respondents having violated any or all conditions of the bail, it is always open for the petitioner to approach the said Court seeking for cancellation of the bail - Petition dismissed. Issues: Setting aside order of lower court, committing respondents to judicial custody, violation of bail conditions, jurisdiction to cancel bailThe petitioner sought to set aside the order passed by the lower court and to have the respondents committed to judicial custody for alleged offenses under Section 132 of the GST Act related to evasion of GST payment through fraudulent means. The petitioner argued that the respondents had cheated the state of significant amounts of money, and serious offenses were alleged against them. However, the court noted that while the allegations were serious, there was no evidence presented by the petitioner to show a violation of the bail conditions imposed earlier. The court emphasized that unless there was a clear violation of the bail conditions, it was not permissible to cancel the bail that had already been granted. The court also clarified that even if there was a violation, the jurisdiction to cancel the bail rested with the court that had granted it, and any additional conditions for effective investigation should be brought to the notice of the trial court for consideration. The court highlighted that if the petitioner had any grievances regarding the respondents' compliance with bail conditions, they were free to approach the court that granted bail for seeking cancellation, and dismissed the petition at the admission stage, reserving the petitioner's liberty to seek relief through the appropriate legal channels.