2022 (9) TMI 1104 - DSC - GST

Bail conditions modified: passport surrender replaced with 7-day advance notice requirement for foreign travel under Section 437

Arjun Anand & Anr Versus DGGI

Arjun Anand & Anr Versus DGGI - TMI Issues: Application seeking modification of bail conditions regarding travel abroad and passport deposit.In this judgment, the court addressed the issue of modifying the bail conditions for applicants who were accused of wrongfully claiming Input Tax Credit (ITC). The applicants, who are Directors/Authorized Signatories of registered companies, were granted regular bail but were required to deposit their passports. The court noted that the investigation had been ongoing for some time, and the offence carried a maximum punishment of 5 years of imprisonment. The applicants had applied for the return of their passports for renewal purposes, which was pending before the Ld. CMM. The Department did not clarify if a complaint had been filed, although the investigation was almost complete.The counsel for the applicants argued that the condition of seeking prior permission to travel abroad infringed upon the personal liberty of the applicants guaranteed under the Constitution of India. They contended that no material had been collected to show the applicants' involvement in the offence, and no complaint had been filed despite the arrest and subsequent bail of the applicants. The applicants had cooperated with the investigating agency, and the offence was not punishable for more than 5 years. The counsel highlighted that the accused were not fly-by-night entities and had been frequent travelers for business purposes.The court considered various legal precedents and emphasized that while imposing conditions for bail, the court must balance the personal liberty of the accused with the interests of justice and society. It highlighted that the accused, presumed innocent until proven guilty, had fundamental rights, including the right to travel. The court stressed the need to protect the rights of the accused while ensuring the integrity of the investigation and trial process.Ultimately, the court modified the bail condition, requiring the applicants to provide 7 working days' prior intimation to the Department before any foreign travel. They were directed to furnish detailed travel itineraries, flight details, stay information, and ensure no travel dates clashed with court or investigative agency requirements. Additionally, the applicants were instructed to provide a surety bond of Rs. 20,00,000 each. The Department was granted liberty to revoke the order if the applicants failed to comply at any point during the investigation or trial. The application seeking modification of bail conditions was disposed of accordingly.