TaxTMI 
TaxTMI 
2021 (11) TMI 718
X X X X Extracts X X X X
X X X X Extracts X X X X
....was alleged by the prosecution that sole proprietor of said firm was Smt. Sushma Devi (mother of applicant), who expired on 28.04.2021 but the registration certificate was not surrendered and no returns were being filed and that all the activities of business of firm was controlled and managed by applicant in term of Section 93 of the Central Goods & Services Tax Act, 2017. Learned counsel submitted that applicant was not having good relations with his parents and brothers at Kanpur as applicant has married with a Muslim lady and applicant along with his wife was residing in New Delhi and that applicant was not involved in business of his parents. It was stated that mother of applicant, namely, Smt. Sushma Devi, was proprietor of two firms by the name of M/s Vikas & Company, which were engaged in business of manufacture and sales of branded chewing tobacco. Upon enforcement of GST regime with effect from 01.07.2017, one of the firm, namely, Vikas & Company (GSTIN : 09AELPD1786P1ZT) was migrated into GST and was granted registration certificate but another firm M/s Vikas & Company (GSTIN:09AELPD1786P2ZS) initially choose not to migrate but later on it has applied and was granted reg....
X X X X Extracts X X X X
X X X X Extracts X X X X
....that provisions of this section can be invoked only after determination of tax, which has not been taken place yet in the present case. It was submitted that authorized signatory of M/s Vikas & Company was late mother of applicant and that applicant has not signed any invoice, cheque or any other document on behalf of M/s Vikas & Company and that applicant has no connection with day-to-day business of the said firm and thus, the allegation of opposite party no.2 that applicant is authorized signatory of the said firm is completely false. It has further been submitted that even if the confessional statement of applicant is to be believed and if an offence under Section 132(1)(a) is made out, then also the total amount of tax evasion is around Rs. 1,01,76,022/-, which falls under clause (iii) of Section 132(1) and it is a bailable offence. The Commissioner while issuing authorization of arrest has not recorded appropriate reasons and that tabulation made by opposite party no.2 is highly inflated and incorrect. Further, against adjudication order, M/s Vikas & Company has statutory right of appeal by making pre-deposit disputed amount of tax. Learned counsel has given much thrust to th....
X X X X Extracts X X X X
X X X X Extracts X X X X
....he was instrumental of cash transactions related to uncounted outward supply of BCT and uncounted purchase of raw materials. It has been submitted that the tabulation conducted so far has reveled evasion of GST of Rs. 1,01,76, 022/- and Central Excise duty of Rs. 31,90,909/- for four months from January 2021 to April 2021 and that applicant has admitted monthly uncounted sale of M/s Vikas & Company is about 25-30 lakhs and in view of these facts, admitted total GST evasion would be more than Rs. 5 crores. It has been submitted that investigation is still going on and voluminous incriminating documents and articles showing the evasion of GST of more than Rs. 5 crores are under scrutiny. I have considered the rival submissions and perused the record. It would be pertinent to mention that in case of Nitin Verma vs. State of Uttar Pradesh, 2021 (49) GSTL 357 (All) the coordinate Bench of this Court has held has under: "7. After considering the aforesaid authorities, the Punjab and Haryana High Court has concluded in aforesaid judgement as follows :- 122. The following factors and parameters can be taken into consideration while dealing with the anticipatory bail: ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....on record. 125. These are some of the factors which should be taken into consideration while deciding the anticipatory bail applications. These factors are by no means exhaustive but they are only illustrative in nature because it is difficult to clearly visualise all situations and circumstances in which a person may pray for anticipatory bail. If a wise discretion is exercised by the concerned judge, after consideration of entire material on record then most of the grievances in favour of grant of or refusal of bail will be taken care of. The legislature in its wisdom has entrusted the power to exercise this jurisdiction only to the judges of the superior courts. In consonance with the legislative intention we should accept the fact that the discretion would be properly exercised. In any event, the option of approaching the superior court against the court of Sessions or the High Court is always available. 126. Irrational and Indiscriminate arrest are gross violation of human rights. In Joginder Kumar's case (supra), a three Judge Bench of this Court has referred to the 3rd report of the National Police Commission, in which it is mentioned that the quality o....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... more than Rs. 5 crores. It is not disputed that an amount of Rs. 1,23,61,000/- was seized from premises of said firm, which was taken into possession by the DGGI officials. This legal proposition could also not be disputed that as per provisions of Section 132(1)(iii) of Central Goods and Services Tax Act 2017, the evasion of tax of Rs. 1,01,76,022/- is a bailable offence and that in this case, amount of Rs. 1,23,61,000/- has already been seized from the premises of applicant. It could also not be disputed that against the adjudication order, the alleged firm has statutory right of appeal by making pre-deposit disputed amount of tax. It could also not be disputed that till date opposite party nos. 2 and 3 have not quantified quantum of total tax alleged to have been evaded. The applicant is stated in custody since 01.10.2021, having no criminal antecedents. Keeping in view the submissions of learned counsel for the parties, entire facts of the matter brought on record, quantum of evasion of tax involved in the matter, period of custody of applicant and all attending facts and circumstances of the case, the Court is of the view that a case for bail is made out. Hence, the bail a....