TaxTMI 
TaxTMI 
2025 (12) TMI 1135
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....searches, by the Investigating Agency of the respondent, were conducted, almost simultaneously. The first search was from 5.45 P.M. to 11.45 P.M. at the residential premises of the petitioner and the second one from 5.43 P.M. on 26.05.2025 till 01.50 A.M. on 28.05.2025 at the premises of the company of the petitioner 'M/s PMI Smelting Private Limited', GST No. 03AANCP1807A1ZZ. As per complainant, during the former search, one mobile phone and certain documents kept in Folders No.1 and 2, respectively, were seized, while in the second search only the personal mobile phone of the petitioner was seized. 3. The pith and substance of the allegations, as contained in the complaint, is that an intelligence was gathered to the effect that 'M/s PMI Smelting Private Limited' having registered office at 536/210, Industrial Area-C, Dhandari Kalan, Ludhiana, having GSTIN 03AANCP1807A1ZZ, was engaged in availing Input Tax Credit, hereinafter being referred to as "ITC", and has thereby caused loss to the State Exchequer to the tune of Rs.30.21 Crores (approx.) on the basis of invoices taken from 'M/s P.C. Techno Solutions', without actual transaction of goods. Said 'M/s P.C. Techno Solutions' ....
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.... that at the time of search no incriminating material showing involvement of the petitioner in any crime was collected; iv) that the panchnama with regard to seizure of alleged evidence, such as cheque book etc. at the business premises of the petitioner shows that the search proceedings were conducted in the presence of so called Manager, namely Inderpal Singh. According to petitioner, Inderpal Singh has never been an employee of the petitioner and thus, the very basis of the prosecution of the petitioner, i.e. search proceedings itself, stands vitiated; v) that the premises being plot No. 501, Industrial Area-B, Gill Road, opposite Meshi Dhabha, Ludhiana, Punjab, does not belong to the petitioner and in fact an entirely separate entity is operating its business activities from the aforesaid address, having no connection or nexus, whatsoever, with the petitioner; vi) that before conducting raid, neither any show cause notice was served upon the petitioner nor he was given an opportunity of being heard or explain his position and straightway the prosecution has been initiated; vii) that the petitioner was detained by the officials of the responde....
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....oner is not entitled for the benefit of bail as adequate medical assistance was provided to the petitioner without any delay, when he was in custody and fell ill. While claiming that no ground for grant of bail is made out, the respondent has sought the dismissal of instant petition. 8. Heard. 9. It has been contended by learned counsel for the petitioner that to save a person from being falsely implicated in a criminal case several safeguards have been provided by the legislature under the statute and the same have been further developed in the judicial precedents, but the instant case is an example of blatant violation and breach of all the above mentioned norms and the statutory provisions. According to learned counsel for the petitioner, one of the most strange fact to be taken into consideration is that the entire prosecution of the petitioner is founded on the alleged search, conducted in the alleged business premises of the petitioner, and that the above mentioned search itself is a doubtful proceeding and also a proceeding conducted in violation of law. 10. With regard to above, the learned counsel for the petitioner has contended that firstly, the premises where t....
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....efore, the petitioner is entitled to the benefit of bail. 15. It has also been contended by learned counsel for the petitioner that by virtue of order dated 24.07.2025, on medical grounds, the interim bail has been accorded to the petitioner, and that there is no allegation against the petitioner that during the above mentioned period the benefit of interim bail according to the petitioner has been misused by the petitioner in any manner, whatsoever. 16. In support of his arguments, the learned counsel for the petitioner has referred to the principles of law laid down by the Hon'ble Supreme Court of India in the following cases:- • Directorate of Enforcement v. Subhash Sharma (2025) SCC Online SC 240; • Anvar P.V. v. P.K. Basheer and Others (2014) 10 SCC 473; • Manish Kumar v. Directorate General, Goods & Services Tax Intelligence, Zonal Unit, Ludhiana, Criminal Misc. No. M-8675 of 2025, decided on 28.07.2025. 17. The learned counsel for the respondent has controverted the above mentioned arguments. It has been contended by learned counsel for the respondent that the instant case is a case wherein all types of illegal tactics have bee....
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.... 16 SCC 1; • The State of Bihar and Another v. Amit Kumar alias Bacha Rai, (2017) 13 SCC 751; • Y.S. Jagan Mohan Reddy v. Central Bureau of Investigation, (2013) 7 SCC 439; • Adri Dharan Das v. State of West Bengal, (2005) 4 SCC 303; And • Radhika Agarwal v. Union of India, (2025) 6 SCC 545; Union of India v. Padam Narain Aggarwal etc., (2008)13 SCC 305 20. I have given the due consideration to the facts and circumstances to get the present case and the arguments addressed by the learned counsel for the parties. 21. In the present case, it is relevant to note here that with regard to right of bail, the Hon'ble Supreme Court of India in the case of Vineet Jain v. Union of India, Criminal Appeal No. 2269 of 2025, decided on 28.04.2025, has made the following observations:- "The offences alleged against the appellant are under Clauses (c), (f) and (h) of Section 132(1) of the Central Goods and Services Tax Act, 2017. The maximum sentence is of 5 years with fine. A charge-sheet has been filed. The appellant is in custody for a period of almost 7 months. The case is triable by a Court of a Judicial Magistrate. The senten....
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.... by virtue of Article 21 of the Constitution of India. 25. This Court in the case of Gurcharan Singh and Others v. State AIR 1978 SC 179 observed that 'two paramount considerations, while considering petition for grant of bail in non-bailable offence, apart from the seriousness of the offence, are the likelihood of the accused fleeing from justice, and tampering with the prosecution witnesses. Both of them relate to ensure of the fair trial of the case. 26. With regard to right of bail to an accused, the Hon'ble Supreme Court of India in the case of Directorate of Enforcement v. Subhash Sharma 2025 SCC Online SC 240 has ruled that "once a Court, while dealing with a bail application, finds that the fundamental rights of the accused under Articles 21 and 22 of the Constitution of India have been violated while arresting the accused or after arresting him, it is the duty of the Court dealing with the bail application to release the accused on bail. The reason is that the arrest in such cases stands vitiated. It is the duty of every Court to uphold fundamental rights guaranteed under Articles 21 and 22 of the Constitution." 27. The Hon'ble Supreme Court of India in the case o....
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.... months and completion of trial, in any event, would take some time. Needless to mention that the petitioner if released on bail, is required to adhere to the conditions to be imposed and diligently participate in the trial. Further, in a case of the present nature, the evidence to be tendered by the respondent would essentially be documentary and electronic. The ocular evidence will be through official witnesses, due to which there can be no apprehension of tampering, intimidating or influencing. Therefore, 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. Hence, it is directed that the petitioner be released on bail subject to the conditions to be imposed by the trial Court, which among others, shall also include the condition to direct the petitioner to deposit his passport. Further, such other conditions shall also be imposed by the trial Court to secure the presence of the petitioner to diligently participate in the trial. It is further directed that the petitioner be produced before the trial Court forthwith, to ensure compliance of this order." 31. On the oth....
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....o be visited with a different approach in the matter of bail. The economic offence having deep rooted conspiracies and involving huge loss of public funds needs to be viewed seriously and while granting bail Court, inter alia, has to see the character of the accused, circumstances which are peculiar to the accused, reasonable possibility of securing the presence of the accused at the trial, reasonable apprehension of the witnesses being tampered with, the larger interests of the public/state and other similar considerations." 35. In the case of Adri Dharan Das (supra), it has been propounded by the Hon'ble Supreme Court of India that for grant of bail under Section 439 of Cr.P.C. (akin to Section 483 of BNSS) the accused should be in custody. 36. As far as the principles laid down in the above mentioned case is concerned, the same is not relevant in the present case as technically the petitioner who has been granted interim bail during the pendency of this bail petition, is in custody. 37. With regard to instant petition the observations made by the Hon'ble Supreme Court of India in the case of Radhika Aggarwal (supra) are relevant wherein, it has been ruled that "grounds ....
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....o the period of detention of the petitioner before producing him in the Court of Judicial Magistrate; IV) that the petitioner has been suffering from serious ailment and during custody period, he had to be shifted to hospital, which led to grant of benefit of interim bail on medical ground; V) that the trial is not likely to be completed in near future; VI) that detention of petitioner in judicial lock-up is not likely to serve any purpose; VII) that there is nothing on record to show that if released on bail, the petitioner is likely to tamper with the evidence or influence the witnesses; and VIII) that there is nothing on record to show that if released on bail, the petitioner will not participate/cooperate in the trial. 40. With regard to the legal aspect involved in the instant case, it is relevant to mention that the Hon'ble Supreme Court in the case of Dataram v. State of Uttar Pradesh and Another(2018) 3 Supreme Court Cases 22, has observed that "a fundamental postulate of criminal jurisprudence is the presumption of innocence, meaning thereby that a person is believed to be innocent until found guilty. However, there are insta....
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....d." It has also been observed by the Hon'ble Supreme Court of India in the above mentioned case that "delays are bad for the accused and extremely bad for the victims, for Indian society and for the credibility of our justice system, which is valued. Judges are the masters of their Courtrooms and the Criminal Procedure Code provides many tools for the Judges to use in order to ensure that cases proceed efficiently." 43. Therefore, to elucidate further, this Court is conscious of the basic and fundamental principle of law that right to speedy trial is a part of reasonable, fair and just procedure enshrined under Article 21 of the Constitution of India. This constitutional right cannot be denied to the accused as mandated by Hon'ble Apex court in Balwinder Singh versus State of Punjab and Another 2024 SCC Online SC 4354. 44. If the cumulative effect of all the above mentioned factors, involved in the instant case, is taken into consideration, it leads to a conclusion that the petitioner is entitled for the benefit of bail, and that the present petition deserves to be allowed. 45. Accordingly, without commenting anything on the merits of the case, the present petition is here....