TaxTMI 
TaxTMI 
2025 (5) TMI 2176
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....mila Sharma, Senior Panel Counsel, for the respondent. ORDER Both the present petitions have been preferred under Section 483 BNSS, seeking grant of regular bail in the complaint case No. DGGI/INT/INTL/939/2024-GrE-O/O ADG-DGGI-ZU-LUDHIANA for offences under Section 132(1)(b) of the Central Goods and Service Tax Act, 2017 (hereinafter 'the Act') and punishable under Sections 132(1)(b) and 132(1)(c) of the Act. 2. Learned Senior counsel inter alia submits that the petitioner has been unjustly implicated in the present case on the ground that suspicious withdrawal of cash was made by him from various bank accounts. Further, it has been claimed that searches were conducted which resulted in recovery of fake bills and electronic d....
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....f the Act. Further, another circular by the said Board, bearing No. 01/2025-GST dated 13.01.2025 mandates explaining the grounds of arrest to the accused. In fact, the person so arrested is required to acknowledge the same at the time of service of the arrest memo. A perusal of the record of the case would indicate that none of these requirements have been complied with, as such, Section 132 of the Act cannot be invoked against the petitioner. 4. Learned Senior counsel further submits that the respondent authority notoriously creates an atmosphere of fear and extorts tax from the accused, by threatening them with arrest. It indulges in cherry picking cases where no adjudication takes places and such modus operendi is adopted thereby....
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....ailable offence specified in clauses (a) to (d) of sub-section (1) to Section 132. The computation of the tax involved in terms of the monetary limits under clause (i) of sub-section (1), which make the offence cognizable and non-bailable, should be supported by referring to relevant and sufficient material. 57. The aforesaid exercise should be undertaken in right earnest and objectively, and not on mere ipse dixit without foundational reasoning and material. The arrest must proceed on the belief supported by reasons relying on material that the conditions specified in sub-section (5) of Section 132 are satisfied, and not on suspicion alone. An arrest cannot be made to merely investigate whether the conditions are being met. The ar....
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....rrest when he is able to ascertain and record reasons to believe. As indicated above, the reasons to believe must be explicit and refer to the material and evidence underlying such opinion. There has to be a degree of certainty to establish that the offence is committed and that such offence is non-bailable. The principle of benefit of doubt would equally be applicable and should not be ignored either by the Commissioner or by the Magistrate when the accused is produced before the Magistrate. xxx xxx xxx 62. The circular also refers to the procedure of arrest and that the Principal Commissioner/Commissioner has to record on the file, after considering the nature of the offence, the role of the person involved, the evidence....
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....he arrest should also be mentioned in the arrest memo. Lastly, a copy of the arrest memo should be given to the person arrested under proper acknowledgement. The circular also makes other directions concerning medical examination, the duty to take reasonable care of the health and safety of the arrested person, and the procedure of arresting a woman, etc. It also lays down the post-arrest formalities which have to be complied with. It further states that efforts should be made to file a prosecution complaint under Section 132 of the GST Acts at the earliest and preferably within 60 days of arrest, where no bail is granted. Even otherwise, the complaint should be filed within a definite time frame. A report of arrests made must be maintained....
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....appellant is in custody for a period of almost 7 months. The case is triable by a Court of a Judicial Magistrate. The sentence is limited and in any case, the prosecution is based on documentary evidence. There are no antecedents We are surprised to note that in a case like this, the appellant has been denied the benefit of bail at all levels, including the High Court and ultimately, he was forced to approach this Court. These are the cases where in normal course, before the Trial Courts, the accused should get bail unless there are some extra ordinary circumstances." 7. Per contra, learned counsel for the respondent opposes the grant of bail to the petitioners and relying upon the judgment rendered by the Hon'ble Supreme Court ....