Onerous bail security condition replaced with disclosed-asset security where tax liability was still undetermined

A bail condition requiring security equal to an undetermined tax and penalty claim under the Central Goods and Services Tax Act, 2017 was treated as onerous and vague. The Court noted that the liability had not yet been determined, so a monetary security tied to that claim was excessive and uncertain. It accepted the affidavit disclosing family assets and substituted the disputed monetary requirement with security of the disclosed assets. The bail order was therefore modified so that release on bail would follow upon furnishing the alternative security.

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Issues: Whether the bail condition requiring the petitioner to furnish a security bond equal to the amount claimed as tax and penalty was onerous and vague, and whether it should be substituted by security of disclosed assets.

Analysis: The petitioner was facing proceedings for offences under the Central Goods and Services Tax Act, 2017 and had been granted bail, but the impugned condition required security for an amount not yet determined. The Court found this condition to be onerous and vague. Taking note of the affidavit disclosing the family assets, the Court accepted the same and considered it appropriate to substitute the disputed monetary security condition with security of the assets disclosed in the affidavit.

Conclusion: The condition requiring a security bond equal to the claimed tax and penalty amount was held unenforceable, and the petitioner was permitted to furnish security of the disclosed assets instead, in favour of the petitioner.

Final Conclusion: The bail order was modified to remove the monetary security requirement and the petitioner was to be released on bail upon furnishing security of the disclosed assets.

Ratio Decidendi: A bail condition that is uncertain or excessive in relation to an undetermined liability may be treated as onerous and substituted by a reasonable alternative security.

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