2022 (12) TMI 196 - HC - GST

Tax Fraud Suspect Secures Anticipatory Bail After Demonstrating Full Cooperation with Investigating Authorities in Input Credit Claim Case

HC granted anticipatory bail in a tax fraud case involving false input tax credit claims. Despite serious allegations of causing government financial ... Seeking grant of Anticipatory bail - evasion of GST - availment of false input tax credit - bogus sale of goods without payment of GST - bailable offence as per the provisions of Section 132 of GST Act or not - HELD THAT:- In this manner, the accused persons caused loss worth Rs.19219675/- to the Government exchequer. As has been contended by the counsel for the petitioner such type of evasion to the extent of Rs.5 crore under GST Act, amounts to a bailable offence. Further in the present case, the petitioner has cooperated with the police and has handed over his laptop, voice sample and sample of his signatures to the police and is not required by the police for any further investigation. This Court is of the opinion that the petitioner can be granted concession of anticipatory bail - the present petition is allowed and order granting interim bail 27.04.2022 to the petitioner is hereby made absolute subject to the condition envisaged under Section 438(2) Cr.P.C. Issues:Grant of anticipatory bail in a case involving allegations of causing loss to the Government Exchequer through false input tax credit claims.Analysis:The petitioner sought anticipatory bail in a case where an FIR was registered against them under various sections, including Sections 120-B, 420, 467, 468, 471, and Section 406 IPC. The allegations involved causing a substantial loss to the Government Exchequer by claiming false input tax credit. The petitioner argued that the offense falls under a bailable category as per Section 132 of the GST Act, especially considering the amount involved. Additionally, it was highlighted that the petitioner had cooperated with the investigation by providing his voice sample, signatures, and laptop to the police for examination.The State counsel did not dispute the petitioner's cooperation with the investigation, acknowledging that the petitioner had joined the investigation and provided the necessary samples and devices to the police. The State counsel did not contest these facts, indicating that the investigation was ongoing, awaiting reports from the Forensic Science Laboratory (FSL) regarding the evidence provided by the petitioner.The allegations against the petitioner and other accused involved fraudulent claims of input tax credit and causing a significant loss to the Government Exchequer. However, the petitioner's cooperation with the investigation, as evidenced by providing crucial evidence and samples, was a crucial factor in the court's decision. The court noted that the petitioner was not required for further investigation by the police, indicating a level of cooperation that supported the grant of anticipatory bail.Considering the circumstances, the court concluded that the petitioner was eligible for the concession of anticipatory bail. Therefore, the court allowed the petition, making the interim bail granted earlier absolute, subject to the conditions specified under Section 438(2) of the Criminal Procedure Code (Cr.P.C.). The decision was based on the petitioner's cooperation with the investigation and the nature of the alleged offense under the GST Act, leading to the grant of anticipatory bail in this case.