Court modifies bail condition to allow security instead of cash, emphasizing reasonableness and applicant's compliance.

The court found Condition No. 4 of the bail order unsustainable and modified it, allowing the applicant to submit security equivalent to the remaining disputed amount instead of cash. The court emphasized the need for reasonable bail conditions and balanced the interests of the accused and prosecution. The applicant's compliance with undertakings and willingness to provide security were noted, leading to the modification of the bail condition. The court referred to legal precedents emphasizing the reasonableness of bail conditions. The bail application was disposed of with the provision for bail cancellation if the applicant failed to furnish the security as per his undertaking.

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Issues: Whether the bail condition directing deposit of the remaining disputed input tax credit amount was harsh and unreasonable, and whether it should be modified to permit furnishing security other than cash or bank guarantee.

Analysis: The application sought modification of the bail condition requiring deposit of the remaining disputed amount as a precondition for bail. The Court noted that the applicant had already deposited a substantial part of the disputed amount, that the departmental enquiry was still pending, and that no complaint, recovery proceedings under sections 73 or 74 of the Central Goods and Services Tax Act, 2017, or provisional attachment under section 83 of that Act had yet been made. The Court also considered the principle that bail conditions must be reasonable, cannot be so onerous as to make bail illusory, and must maintain a proper balance between the accused's liberty and the interest of revenue. In these circumstances, directing cash deposit of the entire remaining amount was held to be unsustainable.

Conclusion: The bail condition was modified, and the applicant was permitted to furnish security equivalent to the remaining disputed amount, other than cash and bank guarantee.

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