TaxTMI 
TaxTMI 
2025 (12) TMI 1296
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....ocate for Accused has humbly submitted that the applicant is absolutely innocent person and has not committed any of the offence under the GST Act and there is no primafacie case against the applicant and looking the fact of present case and age of Accused and dependency of his family, it is requested to kindly grant bail. The Applicant anticipate that though he is being issued undated Summons at Mark-3/7 by Mr. M. J. Tala, Asstt. Commissioner(2), Enforcement, Division-10, Rajkot and Summons dated 03/10/2025 at Mark-3/8 by Mr. O. P. Chauhan, Asstt. Commissioner of State Tax(1), Enforcement, Div-9, Bhavnagar, for producing Record & Statement regarding Brahm Associates, he apprehend that he may be arrested. The Ld. Advocate for Accused has further humbly submitted that if bail is not granted, then it will amount to Pre-Trial Punishment. (4). The Ld. Advocate for Accused has further humbly submitted that the Applicant/Accused is an innocent person and he may be falsely implicated with such alleged offence and no primafacie case is made out against present Accused. It is further submitted that the Applicant give assurance to abide and comply all conditions, which may be imposed by t....
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....n'ble Apex Court as well as the Hon'ble High Court has observed that when an offence is punishable with imprisonment upto 7 years, then it is mandatory on the part of the police authority to scrupulously follow the directions issued by the Hon'ble Apex Court in the cases of ARNESH KUMAR Vs. STATE- (2014) 8 SCC 273, SATENDER KUMAR ANTIL Vs. CENTRAL BUREAU OF INVESTIGATION-(2022) 10 SCC 51 and Md. ASFAK ALAM Vs. STATE OF JHARKHAND-2023 SCC OnLine SC 892 and further held that police shall comply with said directions and provision made under Section 41A of Code of Criminal Procedure and prior to making mechanical arrest of a person, police authority shall have to follow the aforesaid provisions and dictum as well. (10). The Ld. Advocate for the Applicant has submitted that two of the proprietor of the firm who are alleged to have committed evasion of tax, for which the Applicant was Chartered Accountant, have filed the F.I.R after filing of this bail application, which are produced at Mark-7/1 and 7/2 with Jamnagar City C Division Police Station. The alleged offence is punishable under Section 406 of I.P.C., which is punishable only upto 3 years. It is worthless to note that....
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....r appeal is preferred under Section 107 of Central / Gujarat Goods and Services Tax Act, 2017 and on depositing of 10% of the assessed tax / disputed tax, stay is deemed to be granted. If we go through the report of the concerned office of GST at Exh.-6, then it is clearly stated that investigation is going on. Moreover, there is maximum punishment of 5 years in Section 132(1)(i) of the of Central / Gujarat Goods and Services Tax Act, 2017 and the said offence is compoundable under Section 138 of the of Central / Gujarat Goods and Services Tax Act, 2017. The Ld. Advocate for the Applicant has submitted that they are ready and willing to co-operate in investigation and to produce all the documents, but he apprehend that while appearing on the basis of summons, they will immediately arrest the Accused / Applicant in view of powers under Section 69 of of Central / Gujarat Goods and Services Tax Act, 2017. The case is based on documentary and electronic evidence and therefore, question of changing of statement will not arise. (14). The Ld. Advocate for the Applicant has submitted that the house arrest of the wife of the applicant was made for several days, though she was having feed....
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....98 =R/CRMA 3175/19, D/-11/3/19 wherein summons under Section 70 of Central Goods & Service Tax Act, 2017 was issued and anticipatory bail was granted by the Hon'ble High Court. (18). The Ld. Advocate for the Accused has relied on the decision delivered by the Hon'ble Supreme Court of India (Coram : Hon'ble Justice Krishna Murari & Hon'ble Justice Ahsanuddin Amanullah, JJ) in case of RAJESH KUMAR DADANI Vs. THE STATE OF UTTARAKHAND & ANR. - R/CRMA .../23 (@ SLP (CRI.) 9938/22), D/-27/2/23 wherein summons under Section 70 of the Uttarakhand Goods and Services Tax / Central Goods and Services Tax Act, 2017 was issued and offence was under Section 132(i)(iii) and the case based on documentary evidence and other electronic evidence and there was no final assessment yet made and unless the same is determine, the accused person cannot be said to be under the legal liability to make any payment and after considering the facts of the case anticipatory bail was granted. (19). The Ld. Advocate for the Accused has relied on the decision delivered by the Hon'ble Supreme Court of India (Coram : Hon'ble Justice S. Ravindra Bhat & Hon'ble Justice Dipankar Datta, JJ) in case of BAL MUKUND VAI....
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....dition for not being arrested. Sub-section (5) to Section 74 of the GST Acts gives an option to the assessee and does not confer any right on the tax authorities to compel or extract tax by threatening arrest. This would be unacceptable and violative of the rule of law. We also wish to clarify that the power to grant anticipatory bail arises when there is apprehension of arrest. This power, vested in the courts under the Code, affirms the right to life and liberty under Article 21 of the Constitution to protect persons from being arrested. Arrested. (21). The Ld. Advocate for the Accused has relied on the decision delivered by the Hon'ble High Court of Gauhati (Coram : Hon'ble Justice Mr. Mridul Kumar Kalita, J) in case of GAURAV AGARWAL S/OP SURESH AGARWAL Vs. THE UNION OF INDIA-2025-GAU-AS:11998 =BAIL APP.2787/25, D/-4/9/25 wherein this Court is, therefore, is of the considered opinion that in the instant case, there has been violation of the guidelines issued by the Apex Court in the case of 'Arnesh Kumar Vs. State of Bhiar" (Supra), and on that count alone, the petitioner is entitled to be released on bail. (22). The Ld. Advocate for the Accused has relied on the decision....
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....e action. (24). The Ld. P.P. has submitted that the G.S.T. Officer had issued summons under Section 70 of Central Goods and Services Tax Act, 2017 and / or Gujarat Goods and Services Tax Act, 2017 and even lookout notice is issued and the Applicant is not co-operating in their investigation. A lookout notice, also known as a Lookout Circular (LOC), which is a directive issued by a government agency to prevent a specific individual from leaving the country. It is submitted by the Ld. Advocate for the Applicant that though summons was issued to produce record and giving statement, the Applicant was apprehending that he may be falsely arrested and therefore he had filed anticipatory bail application. It is but natural that when anticipatory bail application is preferred, then it can't be termed as absconding of Applicant during pendency of bail application. Moreover, Applicant cannot be compelled to be a witness against himself and therefore, the fact that he will not answer as wished by GST Officer is not a ground for rejection of bail. Moreover, the Applicant has assured that he would co-operate in the investigation. The offence alleged against firms - clients of Applicant, was s....
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....of those firms could be liable, if any. The Accused in such case for offence punishable under Section 132 of Central Goods and Services Tax Act, 2017 and / or Gujarat Goods and Services Tax Act, 2017, could be the concerned person of those firm and not chartered accountant of such firms. Further, such offence is even compoundable under Section 138 of Central Goods and Services Tax Act, 2017 and / or Gujarat Goods and Services Tax Act, 2017. The law laid down by the Hon'ble Supreme Court in the cases of ARNESH KUMAR Vs. STATE-(2014) 8 SCC 273, SATENDER KUMAR ANTIL Vs. CENTRAL BUREAU OF INVESTIGATION-(2022) 10 SCC 51 and Md. ASFAK ALAM Vs. STATE OF JHARKHAND-2023 SCC OnLine SC 892 are required to be strictly followed. The allegation against the applicant / accused is of transaction of bogus billings of sale and purchase. It is crystal clear that granting anticipatory bail does not amount to discharge, but only granting of liberty during the investigation and pending trial with appropriate terms and conditions. Considering facts & circumstances, it will be just and proper to grant him bail. The anticipated offence is triable by the Ld. Magistrate and punishable maximum upto 5 ye....
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....t anticipatory bail should ideally remain in force until the end of the trial unless specific conditions necessitate otherwise. The court emphasized that anticipatory bail is a fundamental right to protect individual liberty from unnecessary apprehension of arrest. Anticipatory bail can be sought and granted even when an FIR has not been lodged, during the pre-investigation stage, or after the investigation has begun. The ruling clarified that anticipatory bail should not be a temporary measure. It should ideally last until the conclusion of the trial, unless there is a compelling reason to limit its duration. (28). The Hon'ble Supreme Court held in case of SUSHILA AGGARWAL Vs. STATE (NCT OF DELHI)-MANU/SC/0100/2020, D/- 29/1/2020 that the protection granted to a person Under Section 438 Code of Criminal Procedure should not invariably be limited to a fixed period; it should inure in favour of the Accused without any restriction on time. Normal conditions Under Section 437(3) read with Section 438(2) should be imposed; if there are specific facts or features in regard to any offence, it is open for the court to impose any appropriate condition (including fixed nature of relief, ....
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....M.A. No. 4597-11, D/- 12/05/11 of the Hon'ble Gujarat High Court. (31). Order granting or refusing bail is not necessarily required to be speaking order as held by the Hon'ble Supreme Court in case of JIVAJI JEDEJA & Ors. Vs. STATE OF MAHARASHTRA & Ors. -1987 CrLJ 1850 : AIR 1987 SC 1491 The Ld. Advocate for the Applicant had relied on the decision delivered by Hon'ble Gujarat High Court in case of SOLANKI RAVI DIPU Vs. STATE OF GUJARAT- 1992(1) GLR 631 =Cr. M. A. NO. 2681/91, D/- 10-9-91 wherein held that if person can be granted bail, even if arrested, then there may be no harm in granting anticipatory bail to such person. At the stage of bail, generally it is to be seen whether Accused will face the trial or not or whether they will interfere in the investigation and they should not be denied bail if readily available at trial by taking proper surety or else it will amount to pre-trial punishment and the Ld. Advocate for the Accused prayed to apply, in present case, the ratio laid down by the Hon'ble Supreme Court in case of STATE OF RAJASTHAN Vs. BALCHAND-(1977) 4 SCC 308 wherein held that bail is the rule and committal to jail an exception and further observed....
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....Investigating Officer shall remain present at GST Officers, Gujarat Goods and Service Tax Office, Rajyakar Bhawan, 4th Floor, Enforcement Wing, Ashram Road, Ahmedabad, on dated 18/10/2025, on dated 19/10/2025 and from dated 27/10/2025 to 02/11/2025, for investigation, without fail. • The Applicant shall remain present before the concerned Investigation Officer / GST Officer, as & when called upon by service of written communication and shall cooperate in the investigation of matter. • The Accused shall furnish his address, email address and mobile number to Investigating Officers and the Hon'ble Chief Judicial Magistrate, Jamnagar, within 7 days and he shall not change it without permission of the Hon'ble Trial Court. • The Accused shall surrender his passport before this Court, if any, within 7 days of his release. If Accused is not holding any passport, then he shall file affidavit to that effect. • The Accused shall not leave the Country without permission of this Court. • The Accused shall co-operate in the investigation . • The Accused shall not directly or indirectly make any inducement, threat or p....