2026 (2) TMI 597 - HC - GST

Enlargement on bail for foreign national with expired visa granted, subject to surety verification and bail conditions.

Enlargement on bail was granted to a foreign national accused of an economic offence triable by a Magistrate, where the maximum punishment is five years; ... Enlargement on bail - Bail conditions for a foreign national with expired visa - Economic offence triable by Magistrate with maximum sentence of five years - Documentary and electronic evidence bearing on tampering risk - Abuse of liberty of bail and consequences - Judicial instruction on manner of citing judgments (avoid naming presiding judges) - HELD THAT:- It is evident that the applicant has been arrested as being an accused in a matter relating to evasion of tax. The investigation was conducted by the CGST Department subsequent to which the quantum of evasion was calculated and then a complaint was filed arraying the applicant and three other persons along with company as accused. During investigation, a letter of appointment was recovered by the Investigating Agency showing the appointment of the applicant in the said company from 21.02.2024 in its security department. The applicant is stated to be having a child aged about 3 years. The matter is triable by the court of a Magistrate. The maximum punishment attracting in it is five years. Co-accused Vinay Kumar has been granted bail by a co-ordinate Bench of this Court. The applicant is a lady. Admittedly the applicant is a Chinese national and her visa for stay in India has expired for which as per learned counsel for the Union of India she has applied for its extension on 03.02.2026. Looking to the facts and circumstances of this case, the nature of evidence and also the absence of any convincing material to indicate the possibility of tampering with the evidence, this Court is of the view that the applicant may be enlarged on bail. The identity, status and residential proof of sureties will be verified by court concerned and in case of breach of any of the conditions mentioned above, court concerned will be at liberty to cancel the bail and send the applicant to prison. The bail application is allowed. Issues: Whether the applicant, a foreign national accused in alleged GST evasion offences under Sections 132(1)(d),(e),(f),(i),(l) of the Central Goods and Services Tax Act, 2017, is entitled to be enlarged on bail during trial under Section 483 of B.N.S.S., 2023.Analysis: The Court examined the nature of offences, the stage of investigation and prosecution, the character and custodial period of the applicant, and the nature of evidence. The prosecution case arises from an investigation by the CGST Anti-Evasion wing and a complaint has been filed; the alleged tax shortfall was quantified and the matter is triable by a Magistrate with maximum sentence up to five years. The Court considered earlier orders including the Apex Court direction to decide any bail application expeditiously on merits; a co-ordinate Bench had granted bail to a co-accused on similar factual/legal grounds. The Court noted absence of convincing material demonstrating a real risk of tampering with evidence, that the prosecution case is largely documentary/electronic, and that the applicant has been in custody since 26.08.2025. The Court also considered the applicant's status as a female with a young child and the visa/immigration position; immigration authorities have procedures (including X-Misc entry visa) and the applicant's visa-extension application is under process. The Court imposed conditions aimed at preventing tampering, misuse of bail, ensuring attendance at key trial stages, requiring an assurance/certificate from the applicant's embassy, restricting foreign travel without court permission, and periodic reporting of whereabouts. The Court additionally directed verification of sureties and warned of cancellation of bail on breach.Conclusion: Bail granted to the applicant; the applicant's release on bail is allowed subject to specified conditions - conclusion is in favour of the assessee.