2024 (6) TMI 660 - HC - GST

Bail Granted in GST Evasion Case: High-Stakes Financial Fraud Allegations Addressed with Strict Investigative Conditions

HC granted bail to petitioner in GST evasion case involving Rs. 48.19 crore, imposing conditions of cooperation with investigation, non-interference in ... Grant of bail where maximum punishment is five years - charge framed after submission of prosecution report - obligation to cooperate with investigation as bail condition - undertaking not to influence witnesses or investigation as bail condition - restriction on foreign travel as bail conditionGrant of bail where maximum punishment is five years - charge framed after submission of prosecution report - obligation to cooperate with investigation as bail condition - undertaking not to influence witnesses or investigation as bail condition - restriction on foreign travel as bail condition - Petitioner granted bail in complaint for alleged GST evasion, subject to conditions. - HELD THAT: - The Court noted that the offences alleged under sections 132(1)(b), 132(1)(c) and 132(5) of the Central Goods and Services Tax Act carry a maximum punishment of five years and that charge has been framed after submission of the prosecution report. Having considered the legal position cited from Ratnambar Kaushik regarding release where the maximum punishment is five years, and after hearing the parties including the prosecution's objection about a witness statement indicating attempts to influence the investigation, the Court exercised its discretion to release the petitioner on bail. The release was made conditional to safeguard the investigative process: the petitioner must furnish bail bonds with two sureties, cooperate with the Investigating Agency and appear when required, file an affidavit undertaking not to influence the course of investigation or trial, and obtain trial court permission before travelling abroad. These conditions are directed to mitigate the prosecution's concerns while allowing interim liberty pending trial. [Paras 4, 6]Petitioner admitted to bail on furnishing bonds of Rs.100,000 with two like sureties and subject to cooperation, an affidavit undertaking not to influence investigation or trial, and prohibition on foreign travel without trial court permission.Final Conclusion: Bail granted to the petitioner in Complaint Case No. 5760 of 2023 for alleged GST evasion, on specified bonds and conditions aimed at ensuring cooperation with the investigation and preventing interference with witnesses and trial. Issues involved: Bail application u/s 132 (1) (b), 132 (1) (c), and 132 (5) of the Central Goods and Services Tax Act for evasion of GST worth Rs. 48.19 crore.Summary:The petitioner, accused in a case under sections 132 (1) (b), 132 (1) (c), and 132 (5) of the Central Goods and Services Tax Act for evading GST, filed an interlocutory application for early hearing, which was dismissed as the main matter was already taken up. The petitioner is alleged to have evaded GST amounting to Rs. 48.19 crore for three financial years. After the submission of the prosecution report, charges were framed against the petitioner. The maximum punishment for the alleged offences is five years, as per a Supreme Court decision. The Senior Standing Counsel for the opposite party stated that during the investigation, a witness revealed attempts by co-accused persons to influence the proceedings. Considering the nature of the offences and that charges have been framed, the petitioner was granted bail on certain conditions, including cooperating with the investigation and not influencing it in any way.In conclusion, the petitioner was directed to be released on bail upon furnishing bail bonds and sureties, cooperating with the investigation, and giving an undertaking not to influence the proceedings. The petitioner was also restricted from traveling abroad without the court's permission.