2023 (1) TMI 1168 - SCH - GST

Bail Condition Overturned: SC Rules Rs.70 Lakh Deposit Unjustified Without Final GST Assessment.

Subhash Chouhan Versus Union Of India & Anr.

The SC set aside the bail condition imposed by the HC of Chhattisgarh requiring the appellant to deposit Rs.70 Lakhs within 45 days of release. The ... Grant of bail - deposit a sum of Rs.70 Lakhs under protest - HELD THAT:- The condition directing the appellant to deposit a sum of Rs.70 Lakhs is not liable to be sustained and is hereby set aside. The rest of the conditions in the impugned order are sustained - appeal allowed. Issues involved:Challenge to bail condition of depositing Rs.70 Lakhs within 45 days from release.Analysis:The Supreme Court, comprising Hon'ble Mr. Justice Krishna Murari and Hon'ble Mrs. Justice B.V. Nagarathna, granted leave and heard arguments regarding the challenge to the bail condition imposed by the High Court of Chhattisgarh. The condition in question required the appellant to deposit Rs.70 Lakhs under protest to the Principal Commissioner, CGST, Raipur within 45 days of release. The appellant argued that this condition was unsustainable as the First Information Report pertained to wrongfully availing Input Tax Credit of Rs.6,95,32,472, and there was no final assessment under the GST Act establishing the legal liability to pay that amount. The learned ASG representing the Union of India/State concurred that such a condition should not be imposed while granting bail.In light of the submissions and facts presented, the Supreme Court held that the condition directing the appellant to deposit Rs.70 Lakhs was not justified and set it aside. However, the Court upheld the remaining conditions specified in the impugned order. Consequently, the appeal was allowed to the extent of setting aside the Rs.70 Lakhs deposit condition, and any pending applications were disposed of accordingly.