AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2020 (9) TMI 1025
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....that the applicant had secured the interest of revenue to the tune of Rs. 26.66 Crores. 3. He further submits that the applicant has responded to each and every summons issued by the department and the allegations of the department at Para 16 of the judicial remand application dated 14.09.2020 that the applicant was not joining investigation is absolutely misconceived. 4. He also argued that the department does not require any other document / appearance of the applicant is also clear from the final notice to show cause dated 05.03.2020 and with the sole objective of browbeating the applicant, the department directed the applicant to again join investigation on 02.09.2020 and filed a reply dated 27.08.2020 to the travel abroad application stating that : Para : "Subsequent to this bail and on further investigation it is revealed that Parag Garg not only evaded GST in M/s. Gala Overseas, but committed similar in various other firms which were either owned or controlled by him. Para the alleged figure on further investigating has increased from Rs. 2 Crores to Rs. 93 Crores. 5. Ld. counsel for applicant relied upon the judgement tiled as C. Pradeep Petitioner (s) Vs The Commi....
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.... by M/s Aadhaar India and it is revealed that Parag Garg, Proprietor of M/s Aadhaar India has masterminded and played active role in the evasion of taxes and he is the main beneficiary of entire evasion of GST. He submits that the amount of fraudulently availed ITC and fraudulently claimed refund by M/s Aadhaar India is computed to the tune of Rs. 14.24 Crore approx. He further submit that the applicant had been granted bail previously subject to conditions, but he failed to comply with these conditions as he did not join inquiries despite repeated summons as detailed below issued to him for his appearance in relation to cases against various firms/ companies: SI. No. Date of summons Date of appearance In the case of 1 21.11.2019 26.11.2019 M/s Gaia Overseas 2 19.12.2019 24.12.2019 M/s SSAPP Overseas 3 31.12.2019 03.01.2020 M/s Aadhar India 4. 31.01.2020 05.02.2020 M/s Manpar Exim Inc 5. 31.01.2020 06.02.2020 M/s Sanskriti Exim Pvt. Ltd. 10. Ld. Sr. SPP submitted that accused Parag Garg was not cooperating with the investigation and not appeared despite various summons and the investigation of the case is severally hampered. He submits that even on 14.....
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....(1) of CGST Act, 2017 and has deposited part payment of his GST liability before the Hon'ble Court and also submitted property papers to Hon'ble Court during the course of hearing of his bail application. He was granted regular bail on 14.11.2019 with conditions. He further submits that accused Parag Garg has also floated various other firms/ companies, in which he has availed fraudulent ITC on the bills of various firms, which were either non-existent or fake and these firms/ companies have also utilized this fraudulently availed ITC for payment of IGST on export of goods and also took refund of the IGST paid by utilizing fraudulently availed ITC. 15. He further submitted that accused Parag Garg is the sole Proprietor of M/s Aadhaar India and Sanjay Ahuja, an employee of Parag Garg in his statement dated 11.09.2019 inter-alia stated that accused Parag Garg is running business of various other firms including M/s Aadhaar India. He further stated that these firms namely, M/s Gaia Overseas, M/s Aadhaar India etc. do not exist physically and they are being run by them on papers only and it may happen that they are engaged in the purchase of bogus bills to discharge their outw....
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....eases chances of committing similar offences which endangers life and property of the public at large. 20. In economic offences the object of keeping an accused in pre trial detention is to ensure that the accused has no opportunity to tamper with the documentary/ electronic evidence which may reveal the commission of any offence. Furthermore, it can be done to track the money trail which might be d:sturbed by the accused, if released on bail, The accused also be kept in pre trial detention if there is likelihood that he has the opportunity and wherewithal to influence and won over the witnesses of the crime by allurement or threat and commit similar crime again Furthermore, the object of enactment of CGST Act is simpler tax system. reduction in prices of goods and services due to cascading effect of taxes, more efficient neutralization of taxes and simpler tax regime with development of common national market. 21. The personal liberty is a priceless treasure for a human being. It is founded on the bed rock of constitutional right and accentuated further on human rights principle. The sanctity of liberty is the fulcrum of any civilized society. Deprivation of liberty of a person ....
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....e has not been convicted or that in any circumstances, he should be deprived of his liberty under Article 21 of the Constitution upon only the belief that he will tamper with the witnesses if left at liberty, save in the most extraordinary circumstances. Apart from the question of prevention being the object of a refusal of bail, one must not lose sight of the fact that any imprisonment before conviction has a substantial punitive content and it would be improper for any court to refuse bail as mark of disapproval of former conduct whether the accused has been convicted for it or not or to refuse bail to an accused person for the purpose of giving him a taste of imprisonment as a lesson. While considering an application for bail either under Section 437 CrPC, it must be kept in mind that the principle that grant of bail is the rule and committal to jail an exception. Refusal of bail is a restriction on personal liberty of the individual guaranteed by Article 21 of the Constitution. Seriousness of the offence not to be treated as the only consideration in refusing bail: Seriousness of the offence should not to be treated as the only ground for refusal of bail. (Judgment of Sanjay Ch....
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....facts and circumstances of each case will govern the exercise of judicial discretion in granting or refusing bail. It was further held that such question depends upon a variety of circumstances, cumulative effect of which must enter into the judicial verdict. Such judgment itself mentioned the nature and seriousness of nature, and circumstances in which offences are committed apart from character of evidence as some of the relevant factors in deciding whether to grant bail or not. 28. At the outset, it is noted that accused was firstly arrested by DGGI on 07.11.2019 with the allegation that accused is engaged in fradulent availment of input tax credit in the !As of non existing and fictitious firms and it was also gathered that they were utilizing this fraudulent availment of ITC for payment of IGST on export of goods under 1GST Act, 2017. However, he was admitted to interim bail on 08.11.2019 on the conditions that he shall deposit Rs. 1 Crore with DGGI. The said 6nterim bail was regularized vide order dated 14.11.2019 as accused has deposited Rs. 95 Lacs with The department apart from adjustment of excess credit of ITC to the tune of Rs. 1.17 Crores towards tax liability, if any....
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....he court in the matter of bail is not that the accused should be detained by way of punishment but whether the presence of the accused would be readily available for trial or that he is likely to abuse the discretion granted in his favour by tampering with evident." 34. The above decision makes it abundantly clear that even if any new case is made out after release of the accused on bail ipsofacto, the Court or the police/department will not get a right to take the accused to the custody unless the bail originally granted is cancelled for any substantial reasons. There must overwhelming circumstances are necessary for cancellation of bail. Therefore it is clear that the right of a person once he has been granted by the competent authority shall be safeguarded with utmost respect to the said order passed by the competent court. 35. In the criminal jurisprudence prevailing in all common law countries, every person is presumed to be innocent until proved to the contrary. The consequence that logically follows is that an accused ought not to be detained or imprisoned, that the personal liberty even of an accused should not be interfered with, until he is convicted by due process of l....
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....d that while exercising jurisdiction under Section 438(2) of the Cr.PC, the Court ought only to impose such conditions/terms for enlarging an accused on bail as would ensure that the accused does not abscond. These conditions should not be intended or calculated to carry out and effect recoveries from the accused. 39. Ld. Counsel for accused has relied upon the judgment of C. Pradeep (Supra) whereas Ld. Sr. SPP has relied upon the P V Ramanna Redyy vs UOI in writ petition No.4764/2019. I have gone through the said judgments. In PV Ramanna Reddy (supra) Hon'ble Telangana High Court has observed that The protection under Sections 41 and 41-A of Cr.P.C., may be available to persons said to have committed cognizable and non-bailable offences under CGST Act and despite finding that there are incongruities within Section 69 and between Sections 69 and 132 of the CGST Act. 2017, the petitioners were not granted relief in view special circumstances of said case as in said case the accused alleged to have claimed fraudulent ITC claim of Rs. 225 crore. However, said judgement was passed on 18.04.2019 and same was upheld by apex court on 27.05.2019, whereas judgment in the matter of C. P....
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....re, he was arrested on 14.09.2020. It is noted that bail order dated 14.11.2019, one of the bail conditions that he shall join the investigation with the 10 as and when required. Had the investigating Officer came to the conclusion that accused is not cooperating in the investigation, the proper course would have been to move appropriate application before this court or any superior court for cancellation of the bail of accused Parag Garg for violation of the conditions of the bail. However, it was not open to the 10 to re-arrest the accused without seeking prior permission from this court for not cooperating in the investigation. 44. The alleged ITC fraud is to the tune of Rs. 14.24 Crores and as per submissions of Id. counsel for accused / applicant has either deposited or agreed for appropriation of Rs. 42 Crores approx. available with the department or with the court record towards recovery of alleged evasion with prejudice to his rights and contentions. 45. The other judgments cited by both the parties were not having any specific relevance to the present case and therefore they were not discussed separately. Even though Id counsel for accused filed a rejoinder distinguishin....