2023 (4) TMI 1126 - HC - GST

Accused Granted Bail in GST Case After Extended Detention, Released on Bond with Standard Conditions

HC granted regular bail in GST-related case after petitioner's 1.5-year custody. Despite disputed amount discrepancies, court considered extended ... Regular bail - default bail - parity with co-accused - pre-trial custody and long incarceration as ground for bail - summoning stage of complaint - offence under Section 132 of the Goods and Services Tax ActRegular bail - parity with co-accused - pre-trial custody and long incarceration as ground for bail - summoning stage of complaint - offence under Section 132 of the Goods and Services Tax Act - Grant of regular bail to the petitioner in the GST complaint. - HELD THAT: - The Court granted regular bail to the petitioner on the basis that the petitioner had been in custody for over one and a half years while the complaint remained at the summoning stage. The petitioner was shown to be similarly situated to a co-accused who had been granted regular bail and other accused had obtained default bail; parity with those co-accused weighed in favour of bail. The exact quantum of amount alleged against the petitioner was yet to be determined at trial and did not preclude bail; counsel for the parties accepted that even if amounts exceeded a threshold the maximum sentence under the relevant GST provision would be five years, a factor considered in the overall balance. Having regard to prolonged pre-trial incarceration, the stage of proceedings, and parity with co-accused, the Court deemed it fit to release the petitioner on regular bail. [Paras 5, 6, 7]Petitioner released on regular bail subject to furnishing bail bonds/surety to the satisfaction of the trial Court/Duty Magistrate; observations not to be treated as expression on merits.Final Conclusion: The petition under Section 439 CrPC is allowed and the petitioner is granted regular bail on furnishing bonds/surety; the Court's observations are confined to the bail order and do not express any view on the merits. Issues involved: Grant of regular bail under Section 439 of the Code of Criminal Procedure in a case involving offenses under Section 132 of the Central Goods & Services Tax Act, 2017 and Section 132 of the Punjab Goods & Services Tax Act, 2017.Summary:Issue 1 - Bail Application: The petitioner filed a second petition seeking regular bail in a case involving offenses under GST Acts. The petitioner had been in custody for over 1.5 years, with the case still at the summoning stage. The petitioner argued for bail citing parity with other co-accused who had been granted bail. The total disputed amount was claimed to be less than Rs. 5 crores, making it a bailable offense under Section 132 of the GST Act.Issue 2 - Arguments: The petitioner's counsel highlighted the prolonged custody, the bail granted to similarly situated co-accused, and the disputed amount being less than Rs. 5 crores. The respondent's counsel disputed the claimed amount, stating it to be Rs. 13 crores.Issue 3 - Judgment: The court noted that the amount involved was yet to be determined at trial and even if it exceeded Rs. 5 crores, the maximum sentence was five years. Considering the petitioner's extended custody, the bail granted to other accused, and the parity with a co-accused already granted bail, the court deemed it fit to grant regular bail to the petitioner.Conclusion: The court allowed the petition and ordered the release of the petitioner on regular bail, subject to fulfilling bail bond requirements. It was clarified that the decision to grant bail was based on the circumstances and custody duration, without expressing any opinion on the case's merits.