2021 (7) TMI 749 - HC - GST

Court Upholds Bail in GST Act Violations Case

ROHIT KUMAR GOYAL Versus DIRECTOR GENERAL OF GST INTELLIGENCE

The Court confirmed the interim regular bail granted to the petitioner in a case involving alleged violations of Sections 132(1)(b) and 132(1)(c) of the ... Grant of Interim Bail - constitutional validity of provisions in terms of Sections 69 and 132 of the Central Goods and Service Tax, 2017 - the respondent submitted that the investigation is still going on and the petitioner has joined the investigation by providing full cooperation, but his presence is required in further investigation of the case - HELD THAT:- It would be just and appropriate to confirm the interim regular bail granted to the petitioner, subject to his furnishing fresh adequate bail bonds/surety bonds to the satisfaction of the trial Court/concerned Duty Magistrate. The petitioner shall keep on joining the investigation as and when required to do so by giving him notice in writing by the Investigation Officer. Petition disposed off. Issues:Grant of regular bail under Section 439 Cr.P.C in a case involving Sections 132(1)(b) and 132(1)(c) of the Central GST Act, 2017 read with Section 20(XV) of the Integrated GST Act, 2017.Analysis:The petitioner sought regular bail under Section 439 Cr.P.C in a case involving alleged violations of Sections 132(1)(b) and 132(1)(c) of the Central GST Act, 2017 along with Section 20(XV) of the Integrated GST Act, 2017. The Coordinate Bench of the Court considered the arguments presented, noting that no complaint or FIR had been filed, and no loss of revenue to the State exchequer had been established. Reference was made to previous cases where accused individuals facing similar allegations were granted regular bail. The offense in question was deemed triable by a Magistrate with a maximum sentence of up to five years. The petitioner had been in custody since 27.11.2020. The respondent contended that the petitioner was not cooperating with the investigation, leading to an adjournment of the case to 15.03.2021. However, interim bail was granted to the petitioner on the condition of furnishing adequate bail bonds, cooperating with the investigation, and not leaving the country.The petitioner's counsel highlighted the absence of a filed complaint or show cause notice under the CGST Act, emphasizing the maximum punishment of five years for the offense. The petitioner had been in custody for 55 days. On the other hand, the respondent's counsel mentioned that the investigation was ongoing, and the petitioner had cooperated but was still required for further inquiries. Considering these facts, the Court found it just and appropriate to confirm the interim regular bail, subject to the petitioner providing fresh bail bonds to the satisfaction of the trial Court or Duty Magistrate. The petitioner was directed to continue cooperating with the investigation as required.In conclusion, the Court disposed of the petition, confirming the interim regular bail granted to the petitioner. The judgment clarified that nothing in the decision should be construed as an opinion on the merits of the case, focusing solely on the bail issue at hand.