TaxTMI 
TaxTMI 
2026 (4) TMI 1347
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....t'). 2. Learned counsel for the accused-petitioner submits that petitioner has been falsely implicated in the present case and he has no involvement in the alleged offence. It is contended that the entire case of the department rests primarily on the statements recorded of the other co-accused- Narendra Chaudhary under Section 70 of the CGST Act and apart from the same, there is no independent or corroborative material on record connecting the petitioner with the syndicate who is responsible for creating fake firms and issuance of fake bills/invoices and e-ways bills for supply of granite and marbles. 3. It is further submitted that the petitioner satisfies the triple test, inasmuch as he has no criminal antecedents and is a permanent resident and, therefore, there is no likelihood of his absconding. It is contended that the entire case rests on documentary evidence already in the possession of the Department and there is no possibility of the petitioner tampering with the evidence or influencing the witnesses. The alleged offences are triable by a Magistrate and carry a maximum punishment of five years. 4. It is further submitted that the investigation in the present case....
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....f India has opposed the bail application and submits that the petitioner is actively involved in a well-organized syndicate engaged in large scale GST evasion, as the petitioner in connivance with the other co-accused, created and operated multiple fake firms by misusing identities of other persons and generated bogus invoices, e-way bills and transport documents, etc., without actual supply of goods, thereby facilitating wrongful availment and passing on of inadmissible Input Tax Credit. 9. Learned counsel submits that the investigation has revealed that the petitioner was part of a larger conspiracy involving clandestine supply of marble and granite across the country without payment of GST and that the magnitude of tax evasion in the present case is to the tune of approximately Rs.48,41,21,094/- which is well above the threshold as prescribed under Sections 132(1)(a),(f),(h),(l) read with Section 132(5) of the CGST Act, making the offence cognizable and non-bailable. 10. It is further submitted that during the course of investigation, search operations were conducted under Section 67(2) of the CGST Act and incriminating documents and electronic evidence were recovered and ....
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....nsidering the nature and gravity of offence, the instant bail application may be dismissed. 15. Learned counsel for the respondent has placed reliance upon the following judgments passed by the Hon'ble Apex Court as well as this Court:- A. Y.S. Jagan Mohan Reddy Vs. CBI, (2013) 7 SCC 439; B. Nimmagadda Prasad Vs. CBI, (2013) 7 SCC 466; C. Ram Narain Poply Vs. CBI, (2003) 3 SCC 641; D. Kalyan Chandra Sarkar Vs. Rajesh Ranjan, (2004) 7 SCC 528; E. Syed Mohammad Zama Vs. State of Rajasthan, (S.B. Criminal Misc. Bail Application No.11193 & 13466 of 2014) 16. Heard learned counsel for the parties and perused the material available on record. 17. The allegations in the present case pertain to offences under Section 132 of the CGST Act, which relate to fraudulent availment and passing on of Input Tax Credit by way of issuance of fake invoices and e-way bills without actual supply of goods. The material collected during the course of investigation, including documentary evidence as well as the statements of co-accused persons recorded under Section 70 of the CGST Act, prima facie indicates that the petitioner was actively involved in th....
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....oted conspiracy, resulting in significant loss to the public exchequer. At this juncture, it becomes apposite, to refer to the observations made by the Hon'ble Supreme Court in the case of Y.S. Jagan Mohan Reddy Vs. CBI, (2013) 7 SCC 439, wherein it has been held that economic offences constitute a class apart and are required to be viewed with a different approach while considering the prayer for bail and held as under:- "15. Economic offences constitute a class apart and need to 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 considered as grave offences affecting the economy of the country as a whole and thereby posing serious threat to the financial health of the country. 16. While granting bail, the court has to keep in mind the nature of accusations, the nature of evidence in support thereof, the severity of the punishment which conviction will entail, 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 app....
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...., the legislature has tried to strike a balance by allowing the Magistrate to refuse bail by assigning reasons in a given set of circumstances. Meaning thereby, that where in the opinion of the Magistrate, it is not proper or desirable or in the interest of justice to release such accused on bail, he may refuse bail by assigning reasons. The provisions of Section 437(6), as such, cannot be considered to be mandatory in nature and cannot be interpreted to grant an absolute and indefeasible right of bail in favour of accused." (Emphasis Supplied) 25. Moreso, on this aspect, regards must be held to Section 479 of BNSS, which reads as follows: - "479. The maximum period for which undertrial prisoner can be detained. (1) Where a person has, during the period of investigation, inquiry or trial under this Sanhita of an offence under any law (not being an offence for which the punishment of death or life imprisonment has been specified as one of the punishments under that law) undergone detention for a period extending up to one-half of the maximum period of imprisonment specified for that offence under that law, he shall be released by the Court on bail: P....