2024 (2) TMI 854 - HC - GST

Bail Granted to Accused in GST Fraud Case Despite Allegations of Fraudulent Tax Credit Manipulation Under Section 439 Cr.PC

Sonu Versus State of Haryana

Sonu Versus State of Haryana - 2024 (84) G.S.T.L. 423 (P & H) Issues involved: Bail application under Section 439 Cr.PC in a case involving FIR under Sections 420, 467, 468, 201 and 120-B of IPC related to fraudulent GST activities.Issue 1: Allegations and InvestigationThe FIR was registered based on a complaint by an Excise and Taxation Officer regarding the fraudulent activities of a firm, M/s A.S. Enterprises, involving bogus Input Tax Credit (ITC) through fake documents. The firm was found to be non-existing and had created a loss to the Government Exchequer by engaging in paper transactions only, contravening the provisions of the GST Act.Issue 2: Bail ApplicationThe petitioner filed a bail application under Section 439 Cr.PC, seeking release in a case where he was arrested after a delay of more than two years based on a supplementary statement made by a co-accused, Amit Kaushik. The petitioner argued that since the co-accused had been granted bail earlier, his case should also be considered favorably. The State counsel opposed the bail application.JudgmentThe High Court, after considering the arguments, noted that the petitioner had been in custody for over a year and that the trial process might take a significant amount of time. The Court observed that the petitioner's involvement was based on the statement of a co-accused who had already been granted bail. Without delving into the merits of the case, the Court allowed the bail petition, ordering the petitioner's release on bail upon furnishing bail bonds/surety bonds to the satisfaction of the trial Court/Duty Magistrate/Chief Judicial Magistrate.