2021 (11) TMI 9 - HC - GST

Court Grants Bail in Tax Evasion Case

Ashwani Upadhyay Versus State of U.P.

The court granted bail to the applicant in a case involving tax evasion and excise loss, emphasizing the lack of direct evidence linking the applicant to ... Seeking grant of Bail - tax evasion - allegation is that as from the said unit liquor was transported to various licensees in different districts of State and by using a duplicate GST invoice/bilty a different consignment was sent under an already exhausted GST Invoice/bilty and this has caused excise loss and revenue to the State - submission of learned counsel for the applicant is that the applicant has been falsely implicated - HELD THAT:- There is ample materials to indicate that he is an employee of the different firm altogether namely Stellar Capital Services Limited. There is nothing to indicate that the services of the applicant were utilized by the Cooperative Company Ltd. Nothing has been pointed except for incriminating statement made by the co-accused that the applicant has been involved. Moreover, it also to be noticed that the applicant does not have any criminal history and this fact is not disputed. The charge sheet has been filed and there is no apprehension expressed that the applicant is in position to either influence or tamper with the evidence or is at the risk of fleeing from justice. No electronic evidence has been pointed out and in any case the matter is yet to be tested in trial. The material available on record as well as considering the nature of allegations and accusation against the applicant, the severity of the punishment if convicted and the period of incarceration as well as the fact that no apprehension has been expressed by the learned AGA that the applicant is at the risk of fleeing justice or that he would tamper with evidence or influence any witness, hence, at this stage, without expressing any opinion on the merits of the case, this Court is of the view that the applicant is entitled to be released on bail - Application allowed. Issues:1. Bail application of the applicant in a case involving tax evasion and excise loss.2. Applicant's alleged connection with the accused company and role in the offense.3. Arguments by the applicant's counsel and the State's opposition.4. Analysis of evidence and circumstances by the court.5. Decision on granting bail and imposed conditions.Issue 1:The judgment pertains to a bail application by the applicant in a case involving tax evasion and excise loss. The applicant is accused in Case Crime No. 03 of 2021 under Sections 120-B, 420, 467, 468, 471, 477-A I.P.C. & Section 60 (2) Excise Act, Section 66 of Information Technology Act at the Police Station S.I.T. District Lucknow.Issue 2:The applicant's counsel argued that the applicant, an employee of Stellar Capital Services Limited, was falsely implicated in the case related to tax evasion by Cooperative Company Ltd. The applicant's salary was paid by Stellar Capital Services Limited, and there was no direct connection between the applicant and the alleged offense, except for a common MD between the two companies.Issue 3:The State vehemently opposed the bail application, alleging a well-planned evasion of excise revenue involving the applicant. The State mentioned electronic evidence, incriminating statements, and the applicant's role as a sales head with links to licensees. The State argued against granting bail based on the severity of the offense and the applicant's alleged involvement.Issue 4:The court analyzed the material on record and noted the lack of direct evidence linking the applicant to the alleged offense. It highlighted the absence of criminal history for the applicant, the filing of the charge sheet, and no indication of tampering with evidence. The court considered the applicant's personal liberty and the balance with the potential punishment upon conviction.Issue 5:Ultimately, the court granted bail to the applicant, emphasizing the lack of evidence directly implicating the applicant, the absence of criminal history, and the importance of personal liberty. The court imposed conditions, including filing an undertaking not to seek adjournments, remaining present for trial proceedings, and refraining from influencing witnesses or tampering with evidence.This detailed analysis of the judgment showcases the considerations made by the court in granting bail to the applicant while weighing the evidence, arguments, and circumstances presented during the hearing.