2023 (3) TMI 57 - HC - GST

Accused Granted Bail in GST Tax Evasion Case After 14 Months in Custody, Order Does Not Indicate Case Outcome

HC granted regular bail in GST tax evasion case involving alleged tax liability around Rs. 2.67 crores. Despite respondent's claim of total Rs. 13 crores, ... Seeking grant of regular bail - petitioner has already faced incarceration for more than 1 year and 4 months and the maxmium sentence otherwise even if it is more than Rs. 5 crores is five years - HELD THAT:- The quantum of amount which the petitioner is involved is yet to be decided at the time of trial. Under Section 132 of the GST Act even if the amount is more than Rs. 5 crores, the maximum sentence is five years as per the learned counsel for the parties. The petitioner has already faced incarceration for more than 1 year and 4 months. The complaint is still at the summoning stage. The other two accused have already been extended the benefit of bail. During the course of arguments, learned counsel for the respondent has stated that regarding recovery from the petitioner a separate show-cause notice is yet to be issued. Considering the total custody of the petitioner which is more than 1 year and 4 months, this Court deems it fit and proper to grant regular bail to the petitioner - Petition allowed. Issues:Grant of regular bail under Section 439 of the Code of Criminal Procedure in a case under Section 132 of the Central Goods & Services Tax Act, 2017 and Section 132 of the Punjab Goods & Services Tax Act, 2017 read with Section 20 of the Integrated Goods & Services Tax Act, 2017.Analysis:The petitioner filed a second petition seeking regular bail, citing prolonged custody since 07.10.2021, with the case still at the summoning stage based on a complaint by GST authorities. The petitioner argued that despite allegations amounting to about Rs. 2,67,00,000, falling below Rs. 5 crores, a bailable offense under Section 132 of GST Act, the maximum sentence being five years, two co-accused had already obtained default bail. The respondent contended the total amount involved was Rs. 13 crores, but acknowledged the maximum sentence under GST Act as five years. The court noted the pending determination of the petitioner's involvement amount and that the petitioner had been in custody for over 1 year and 4 months. Considering these factors, along with the status of the case and the bail granted to other accused, the court found it appropriate to grant regular bail to the petitioner.The court emphasized that the amount of petitioner's involvement was yet to be established during trial, and even if exceeding Rs. 5 crores, the maximum sentence under Section 132 of the GST Act remained five years. Noting the petitioner's extended custody period, the case being at the summoning stage, and the bail granted to co-accused, the court decided to grant regular bail to the petitioner. The court directed the petitioner's release on bail upon furnishing satisfactory bail bonds or surety to the trial court or duty magistrate. Importantly, the court clarified that its decision on bail should not be construed as an opinion on the case's merits, serving the sole purpose of deciding the present petition.