2023 (11) TMI 452 - HC - GST

Gujarat HC grants regular bail to applicant charged with GST evasion and illegal input tax credit claims

Mohammad Faizal Afzalbhai Kholiya Versus State of Gujarat

Gujarat HC granted regular bail to applicant charged with GST evasion and illegal input tax credit through large-scale financial transactions. Court noted ... Seeking grant of Regular Bail - evasion of GST - availment of illegal Input Tax Credit by entering into large scale financial transactions - HELD THAT:- The allegation against the applicant is regarding the evasion of GST, but no procedure is initiated by the the GST department against the present applicant under the provisions of the GST Act. Without discussing the evidence in detail, this Court, prima facie, is of the opinion that, this is a fit case to exercise the discretion and enlarge the applicant on regular bail. Hence, present application is allowed and the applicant is ordered to be released on regular bail subject to conditions imposed. Issues involved: Application for regular bail u/s 439 of CrPC for offences u/s 409, 419, 465, 467, 468, 471, 120(B), and 34 of IPC in connection with FIR C.R.No.11210015220162 of 2022.Details of the Judgment:Issue 1: Allegations and ArrestThe applicant sought release on bail, arguing that he was not directly implicated in the FIR and no evidence was found against him during investigation. The applicant's counsel contended that the charges did not establish the applicant's involvement in forgery or tax evasion. The investigating officer's affidavit mentioned the applicant's involvement in circulating bills with others but lacked concrete evidence against him.Issue 2: Gravity of OffencesThe State argued that the applicant, along with others, orchestrated tax evasion amounting to crores, causing significant harm to the government exchequer. The State emphasized the serious nature of the charges and the societal impact of such offenses.Issue 3: Court's DiscretionConsidering the applicant's prolonged detention since November 2022, the completion of the investigation, and the absence of actions by the GST department against the applicant, the Court exercised its discretion in favor of granting regular bail. The Court also cited relevant legal precedents and noted that co-accused had been released by the same Court in similar cases.ConclusionThe Court, without delving into detailed evidence, deemed it appropriate to grant the applicant regular bail. The applicant was ordered to furnish a personal bond and surety, adhere to specified conditions, and cooperate with the investigation. Any breach of the conditions would empower the Sessions Judge to take necessary action. The Court emphasized that its observations at this stage should not influence the trial court's proceedings.