2022 (7) TMI 187 - HC - GST

Bail Granted in GST Evasion Case After Partial Payment Made Despite Allegations of Rs. 8.64 Crore Tax Fraud Under Section 132(1)

The HC granted bail in a GST evasion case under Section 132(1) of CGST Act, 2017. Despite allegations of Rs. 8.64 crores tax evasion and claims that the ... Bail under Section 439 Cr.P.C. - Compoundable offence - Admissibility of statements under Section 70 of the GST Act - Grant of bail in economic offences with maximum punishment up to five years - Interim liberty subject to personal bond and sureties - Judicial exercise of discretion to grant bail without expressing opinion on meritsBail under Section 439 Cr.P.C. - Compoundable offence - Grant of bail in economic offences with maximum punishment up to five years - Admissibility of statements under Section 70 of the GST Act - Interim liberty subject to personal bond and sureties - Application for bail under Section 439 Cr.P.C. was allowed and the petitioner was enlarged on bail on specified conditions. - HELD THAT: - The Court considered the submissions of the petitioner that he had been in custody since 26.05.2022, that the offence was compoundable and that he had deposited a substantial amount, and noted the contention that trial may take long and maximum punishment is five years. The respondent contested bail on the ground of large alleged tax evasion, admissible statements recorded under Section 70 of the GST Act and the petitioner being a habitual offender. Balancing these contentions and the facts and circumstances of the case, and expressly without expressing any opinion on the merits of the prosecution, the Court exercised its discretionary jurisdiction under Section 439 Cr.P.C. and found it just and proper to grant bail. The order records the Court's consideration of the prosecution's objections but proceeds to enlarge the accused on bail subject to conditions tailored to secure his attendance at trial. [Paras 6, 7]Bail allowed; petitioner to furnish a personal bond and two sureties as directed for appearance before the trial court.Final Conclusion: Bail application under Section 439 Cr.P.C. allowed; accused enlarged on bail on furnishing the prescribed personal bond and two sureties, the Court observing that the grant is without prejudice to the trial and without expressing any opinion on the merits. Issues:Bail application under Section 439 Cr.P.C. arising from a case related to an offence under Sections 132(1) of the Central Goods and Services Tax Act, 2017.Analysis:1. Petitioner's False Implication and Compoundable Offence:- The petitioner's counsel argued that the petitioner was falsely implicated and had already deposited Rs.87 lacs for a compoundable offence with a maximum punishment of 5 years. The counsel emphasized that the trial might prolong, justifying bail.2. Judgments Relied Upon by Petitioner's Counsel:- The petitioner's counsel cited multiple judgments, including C. Pradeep Vs. The Commissioner Of GST, highlighting cases where bail was granted in similar circumstances.3. Opposition by Senior Standing Counsel:- The Senior Standing Counsel opposed the bail, alleging GST evasion of Rs. 8.64 crores by the petitioner and emphasizing the admissibility of statements under Section 70 of the GST Act. The counsel labeled the petitioner a habitual offender.4. Judgments Cited by Respondent's Counsel:- The Senior Standing Counsel cited various judgments, such as Nimmagadda Prasad Vs. CBI and Serious Fraud Investigation Office Vs. Nittin Johari, to support the denial of bail based on the petitioner's alleged habitual offending.5. Court's Decision on Bail Application:- The court, after considering both parties' arguments and the case's circumstances, granted bail to the petitioner. The court ordered the petitioner to furnish a personal bond of Rs.50,000/- with two sureties of Rs.25,000/- each for his appearance before the trial court on hearing dates.6. Final Order:- The court allowed the bail application under Section 439 Cr.P.C., ordering the accused-petitioner to be released on bail upon fulfilling the specified conditions to ensure his appearance before the trial court as required.