AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2020 (8) TMI 416
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....sel for the petitioner began with the arguments that the only fault of the petitioner is that he is the landlord of the premises where his tenant, who runs a factory, allegedly evaded the tax by clandestine sale of Pan Masala. The petitioner is neither a Partner of his tenant M/s Vishnu Essence nor in any other way concerned with it. But, he has been posed as if he is the only responsible person for whatever has allegedly been done against the law by his tenant, while no document, what-so-ever it may be, has been produced by the department to show his involvement in the alleged tax evasion. 3. In reply, learned Additional Solicitor General submitted that the petitioner is Director of a Media Company, which publishes a daily newspaper in the name and style of "Dabang Dunia". Several vehicles found indulged in clandestine removal/transportation of Pan Masala were having sticker of Dabang Dunia press and drivers of these vehicles were found carrying Identity Cards of Dabang Dunia. This shows that the petitioner was well involved in the alleged tax evasion. Apart from that, statements of the co-accused persons recorded under Section 70 of G.S.T. Act have also been referred by the lear....
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....eet is not filed, the petitioner is entitled for default bail under Section 167 of the Cr.P.C. 8. It is averred that release of the petitioner would hamper the investigation. To bolster this contention, the learned ASG pointed out that a group of persons assaulted the officials when they tried to search of the house of the petitioner following the due process of the law. A separate FIR is lodged against them. The case is registered and is under investigation. This shows that the petitioner is non co-operative with the investigation and only on this ground he is not entitled for bail. This is contested stating that at that time the petitioner or any other male member was not at home. The officials of the department were trying to enter into the house without disclosing their identity. When they were asked to show the same, they misbehaved with the women of the house. The FIR is lodged only to pressurized the petitioner and now it cannot be used as a tool to oppose his prayer for bail. 9. Other arguments of both the parties are on similar lines, which were raised and considered earlier while deciding the bail petitions of co-accused Amit Bothra and Ashok Daga. These arguments as we....
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....s and statements of various persons further confirmed the aforesaid tax evasion. Following the due process, the petitioners were taken into custody and booked in the aforementioned crime. 4. Refuting all the allegations made by the prosecution, it is submitted by the learned senior counsel for the petitioners that the firm M/s Vishnu Essence is duly registered with the GST vide registration no.23AAQFV6401JIZZ. The firm is honestly doing its business. It is paying GST to the tune of Rs. 7-8 crores per month on an average on the sales. Their product contains 85% betel nut (Supari) and 15% Sugandh, Kattha, Elaichi (essence, catechu, cardamom) etc. Supari is purchased from the undertakings/ companies of the government or from the societies run by the government; therefore, clandestine purchase is not possible. Rest of the raw material is purchased from the open market but only from the traders duly registered under the GST through invoices. Therefore, there has never been any scope to evade the tax. 5. It is asserted that the petitioners have never confessed anything before the officials. Their statements were recorded under threat and pressure. They retracted them immediately afte....
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....ed. The dispute is entirely covered under Section 132 of the G.S.T. Act. Initially the offence was also registered under the same Section. Offences under Sections 409, 467, 471 and 120-B IPC are not made out. Record shows that these offences have been added by the officials at a later stage merely with intent to harass the petitioners. 11. It is also stated that the petitioners are in custody since 11.06.2020 and are in jail since 13.06.2020. Their custodial interrogation is not required. The nature of evidence is documentary and all documents are in custody of the Department. Hence, there is no fruitful purpose to keep them in custody. They are paying around 70-80 crores G.S.T. per anum on an average. Their detention would cause loss of this amount to the State exchequer. About 150 workers are working in the firm of the petitioners. In case of their detention, the work of the firm will be at a halt and hence, affect the survival of the families of those 150 workers. The offence is punishable with maximum 5 years imprisonment and is triable by the Judicial Magistrate First Class. The petitioners are ready to abide by the terms and conditions to be imposed by this Court, therefore....
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.... Gujarat in clandestine manner and supplied manufactured pan masala to M/s. AAA Enterprises without invoices and payment of G.S.T. 15. Sale and distribution of pan masala has been completely banned across the country due to pandemic induced lockdown from 25th March, 2020 considering its risk in spread of Covid-19 infection. In spite of the strict restriction, the petitioners' firms took undue benefit of this emergent situation and supplied their finished goods clandestinely in the State of Madhya Pradesh in connivance with M/s. AAA Enterprises. In view of the seriousness of the offence committed by the petitioners, they were arrested under Section 69 of the G.S.T. Act, 2017. As per Section 132(5), since the G.S.T. evasion detected is more than five crores rupees, the offence is cognizable and non-bailable. There is every likelihood of the petitioners affecting the investigation and tampering with the witness. The officials of the DGGI were assaulted when they tried to search the house of Kishore Wadhwani for which an FIR is lodged with Police Station-Juni, Indore. 16. In the case of P. V. Ramana Reddy Vs. UOI W.P. No.4764 of 2019 at paras 56 and 57, the Telangana High Court....
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....nd when required further subject to the following conditions :- (i) The petitioners shall co-operate with the trial and shall not seek unnecessary adjournments on frivolous grounds to protract the trial.; (ii) The petitioners shall not directly or indirectly allure or make any inducement, threat or promise to the prosecution witnesses, so as to dissuade him from disclosing truth before the Court; (iii) The petitioners shall not commit any offence or involve in any criminal activity; (iv) In case of their involvement in any other criminal activity or breach of any other aforesaid conditions, the bail granted in this case may also be cancelled. (v) The petitioners shall submit their passports, if any, before the Trial Court and shall not leave India without prior permission of this Court." 10. I have carefully gone through the documents produced before the Court as well as the statements recorded under Section 70 of the G.S.T. Act. Elaborate discussion of all this evidence, which is otherwise confidential, would not be appropriate as it may affect the case of either party. But on careful consideration of the evidence on record, I am of the considered opinion that it would ....