2025 (10) TMI 714

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.... under Sections 132(1)(b), 132(1)(c), 132(1)(i) of CGST Act, 2017, Commissionerate, Ghaziabad, during pendency of the trial in the court below. 3. Learned counsel for the applicant submitted that the instant matter relates to provisions of CGST and as per allegation, applicant by way of fake input tax credit committed fraud of about Rs. 185 crores but entire allegation levelled against the applicant is totally false. 4. He further submitted that as per allegation, applicant by way of forming shell companies committed the offence of fraud and cheating under the provisions of GST but entire allegation levelled against the applicant are totally false and applicant never formed any shell company as alleged. 5. He further submitted that....

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.... which maximum punishment for the alleged offence is five years and applicant is in jail for last one year and however, investigation of the case has been completed and complaint has been filed way back in the year 2024 but till then, not even a single prosecution witness could be examined. 12. He further could not dispute the fact that applicant is not having any previous criminal history to his credit. 13. I have heard learned counsel for the parties and perused the record of the case. 14. However, as per allegation applicant is a business man and he firstly formed number of shell companies with intention to commit fraud and thereafter by way of fake input tax credit, he availed and passed on more than Rs. 180 crores but in the i....

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...., keeping all these aspects in perspective, in the facts and circumstances of the present case, we find it proper to grant the prayer made by the petitioner." 16. The Apex Court in case of Sanjay Chandra vs. Central Bureau of Investigation (2012) 1 SCC 40 in paragraph no. 46 observed as:- "46. We are conscious of the fact that the accused are charged with economic offences of huge magnitude. We are also conscious of the fact that the offences alleged, if proved, may jeopardise the economy of the country. At the same time, we cannot lose sight of the fact that the investigating agency has already completed investigation and the charge-sheet is already filed before the Special Judge, CBI, New Delhi. Therefore, their presence in th....

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....offences maximum punishment is five years and offences are triable by Magistrate and trial is at initial stage. 19. Further, law is settled that unless proven guilty an accused is deemed to be innocent and bail is a rule while bail rejection is an exception and bail application should not be dismissed either for punitive or preventive purposes. 20. Therefore, considering the facts and circumstances of the case, discussed above, in my view, applicant is entitled to be released on bail. 21. Accordingly, without expressing any opinion on the merits of the case, the instant bail application is allowed. 22. Let the applicant-Chhatar Pal Sharma, be released on bail in the aforesaid case on furnishing a personal bond and two sureties e....