Bail Granted to GST Fraud Accused After Extended Detention: Court Considers Firm Closures, Appeals, and Clean Record Under Section 132 CGST Act

HC granted bail to applicant charged under Sections 132(1)(b) & (1) of CGST Act after imprisonment since 10.09.2021. Court considered that applicant had closed 11 offending firms through proper procedures, appealed disputed transactions, and had no prior criminal history. The co-accused had already received similar relief. Bail was granted with conditions including furnishing personal bond with two sureties, non-tampering with evidence, non-influencing of witnesses, and regular court appearances. The prosecution retained the right to seek bail cancellation if conditions were violated.

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Issues: Bail application under Sections 132(1)(b) & (1) of CGST Act, 2017.

The judgment by Hon'ble Ajay Bhanot, J., of the Allahabad High Court dealt with a bail application filed by the applicant, who was facing charges under Sections 132(1)(b) & (1) of the CGST Act, 2017. The applicant had been in jail since 10.09.2021 following the FIR against him. The bail application was previously rejected by the learned Sessions Judge, Meerut. The applicant's counsel argued that the applicant had been falsely implicated, and the statement under Section 70 of the CGST Act, 2017, was extracted under duress. It was highlighted that the applicant had shut down 11 offending firms after due process and had appealed against other transactions, with no criminal history apart from this case. The counsel sought bail on grounds of congruency with relief granted to a co-accused and assured cooperation in legal proceedings without tampering with evidence or influencing witnesses.

The counsel for the complainant and the State did not satisfactorily dispute the applicant's submissions. The learned AGA acknowledged the lack of criminal history apart from the current case. The judge found merit in the applicant's arguments and granted bail without commenting on the case's merits. The applicant, Rohit Rastogi, was ordered to be released on bail upon furnishing a personal bond and two sureties to the court's satisfaction. Various conditions were imposed, including not tampering with evidence, not influencing witnesses, appearing before the trial court as required, and refraining from inducing or threatening anyone related to the case. The prosecution was given the right to move for bail cancellation if any condition was breached.

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