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of <h1>Supreme Court Strikes Down Excessive Bank Guarantee Requirement for Bail Under CGST Act, Upholding Personal Liberty Principles</h1> <h3>Makhijani Pushpak Harish Versus The State of Gujarat</h3> SC allowed the appeal, setting aside the bank guarantee condition for bail under CGST Act. The court held that imposing a substantial bank guarantee as a ... Grant of Bail - imposition of condition for deposit of bank guarantee, as a pre-deposit for a bail - amount of bank guarantee reduced - HELD THAT:- Such pre-condition of deposit of an amount or furnishing a bank guarantee has been the subject matter of consideration by this Court in a number of cases, where condition of pre-deposit has been held to be bad - Reference may be made to an identical matter in SUBHASH CHOUHAN VERSUS UNION OF INDIA & ANR. [2023 (1) TMI 1168 - SC ORDER], this Court set aside the order passed by the High Court imposing a condition of deposit while granting bail to the appellant therein - It is also pertinent to note that in the said case, the learned Additional Solicitor General appearing for the Union of India/State had fairly stated that such a condition cannot be imposed while granting bail. The same view has been reaffirmed by this Court in another similar case, ANATBHAI ASHOKBHAI SHAH VERSUS STATE OF GUJARAT & ANR. [2023 (3) TMI 684 - SC ORDER]. Facts of the present case being identical to the facts of the aforesaid two Criminal appeals, there exists no reason to deviate from the view taken in the aforesaid two cases. The pre-condition of furnishing bank guarantee imposed by the High Court is not liable to be sustained and is hereby set aside - rest of the conditions imposed for grant of bail by the Chief Judicial Magistrate and upheld by the High Court are hereby sustained. It is directed let the applicant be released on bail. The appeal, accordingly, stands allowed. Issues involved:The imposition of a bank guarantee as a pre-deposit condition for bail under Sections 69 and 132(1)(a) of the Central Goods and Services Act, 2017.The appellant, after being arrested for offenses under CGST, applied for bail under Section 437 of the Code of Criminal Procedure, 1973, before the Chief Judicial Magistrate, Vadodara.The bail was granted with the condition that the appellant must submit a bank guarantee of Rs.3 crores along with other conditions, which the appellant contested.The High Court modified the bank guarantee condition to Rs.1.5 crore, but the appellant challenged this condition.The Supreme Court referred to previous cases where the condition of pre-deposit for bail had been deemed inappropriate, citing cases like Subhash Chouhan Vs. Union of India and Anatbhai Ashokbhai Shah Vs. State of Gujarat & Ors.The Court reiterated that the imposition of a bank guarantee as a pre-condition for bail is not permissible, following the principles laid down in previous judgments.The Supreme Court set aside the bank guarantee condition imposed by the High Court but upheld the other conditions for granting bail by the Chief Judicial Magistrate.As a result, the appellant was directed to be released on bail, and the appeal was allowed.
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