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of <h1>Monetising fraudulent input tax credit: grant of regular bail ordered subject to furnishing bail bonds and surety.</h1> Grant of regular bail was sought in proceedings alleging monetisation of input tax credit obtained fraudulently. The statutory provision under section 132 ... Grant of regular bail - monetizing ITC availed fraudulently - quantum of punishment - HELD THAT:- The statutory provision u/s 132 states that the maximum punishment provided is five years. The petitioner has already completed an incarceration of more than one year. The veracity of the allegations and counter-allegations would be assessed by the trial Court on the basis of the evidences to be led by both the sides and thus, this Court would refrain from commenting anything on the merits of the case. However, confining itself only to the prayer made by the petitioner for grant of bail, this Court is of the opinion that learned counsel for the petitioner succeeds in making out a case for grant of regular bail. The present petition is allowed and the petitioner is ordered to be released on bail on his furnishing bail/surety bonds to the satisfaction of the concerned trial Court/Duty Magistrate. Issues Involved:1. False Implication and Role of Petitioner2. Arrest Procedure and Alleged Highhandedness3. Evidence and Investigation Status4. Bail Consideration and Legal ProvisionsSummary:1. False Implication and Role of Petitioner:The petitioner contended that he was falsely implicated as a scapegoat in the case and was merely an employee of Gurbax Lal @ Happy Nagpal. The petitioner was accused of being an abettor and having firms registered in his name, controlled by Yashpal Mehta, but no evidence substantiated these allegations. The petitioner argued that co-accused Gurbax Lal @ Happy Nagpal, who was granted bail, and Yashpal Mehta, who received anticipatory bail, were the main accused.2. Arrest Procedure and Alleged Highhandedness:The petitioner claimed that he was arrested without any warrant/summons/notice as mandated by Sections 69 and 70 of the CGST Act and was treated inhumanely by CGST officials. His wife filed a habeas corpus petition, and a Warrant Officer found the petitioner tortured by CGST officials. The petitioner alleged that the CGST officials implicated him in connivance with co-accused Gurbax Lal @ Happy Nagpal.3. Evidence and Investigation Status:The respondent-CGST opposed the bail, detailing the petitioner's active role in creating bogus firms and availing fraudulent ITC amounting to over Rs. 215 crores. The investigation revealed that the petitioner was a partner in M/s AR International and proprietor of M/s RA Enterprises, which were found to be bogus. The petitioner allegedly connived with others to monetize ITC fraudulently. The investigation was complete, and the trial had commenced, with 22 prosecution witnesses yet to be examined.4. Bail Consideration and Legal Provisions:The court noted that the petitioner had been in custody for over a year, and the main accused were already on bail. Section 132 of the CGST Act, which outlines punishments for certain offences, was considered. The court refrained from commenting on the merits of the case but found that the petitioner made a case for regular bail. The petition was allowed, and the petitioner was ordered to be released on bail upon furnishing bail/surety bonds to the satisfaction of the trial Court/Duty Magistrate.
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