2021 (12) TMI 833 - HC - GST

Petitioner's Cooperation in Investigation & Interim Bail Granted

The petitioner volunteered to deposit half of the disputed amount with the GST Authorities and agreed to cooperate with the investigation process ... Input Tax Credit - Deposit of half of the disputed amount with the GST Authorities subject to the final adjustment within a period of ten days - HELD THAT:- It is directed that the petitioner shall join the investigation and shall fully cooperate with the investigation process and on his doing so, the petitioner be released on interim bail subject to his furnishing personal bonds and surety to the satisfaction of Arresting/Investigating Officer. However, the petitioner shall continue to join the investigation as and when called upon to do so and shall abide by all the conditions as provided under Section 438(2) Cr.P.C. It is further directed that the petitioner shall forthwith deposit his passport, if any, with the SIT. Adjourned to 11.1.2022. Issues:1. Voluntary deposit of disputed amount with GST Authorities2. Allegation of evading input tax credit3. Conditions for interim bail and cooperation with investigation processAnalysis:1. The petitioner has volunteered to deposit half of the disputed amount with the GST Authorities within ten days, subject to final adjustment. The case revolves around the allegation that the petitioner evaded input tax credit by forging documents of other companies. The total liability is stated to be &8377; 2.5 crores, and the petitioner has agreed to cooperate with the investigation process. The petitioner is willing to join the investigation and has expressed readiness to abide by the conditions imposed.2. The court has directed the petitioner to join the investigation and cooperate fully with the process. In return, the petitioner will be granted interim bail upon furnishing personal bonds and surety to the satisfaction of the Arresting/Investigating Officer. The petitioner must continue to participate in the investigation as required and adhere to the conditions specified under Section 438(2) of the Cr.P.C. Additionally, the petitioner is instructed to deposit any passport held with the SIT.3. The next hearing is scheduled for 11.1.2022, and it is emphasized that any violation of the conditions set by the Court may lead to the State filing an application before the Court even before the next hearing. This highlights the importance of compliance with the terms of the interim bail and cooperation with the investigation to avoid any further legal consequences.