TaxTMI 
TaxTMI 
2026 (8) TMI 316
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....n, Samyak Jain and Ankur Jain passed on fraudulent ITC of Rs. 276.16/- Crores involving a taxable value of Rs. 2,156.57 Crores through fake invoices. They also fraudulently claimed refunds of Rs. 17.53/- Crores based on fake exports shown through 03 shell firms. They admitted in their voluntary statements that they managed all operations of the shell firms, including creating fake entities, filing GST returns, and controlling financial transactions. The offences fall under Section 132(1) (b), (c), (f) & (1) of the CGST Act, 2017, with tax evasion exceeding Rs. Five crores, making it a cognizable and non-bailable offence. 3.The learned counsel for the applicant submits that the whole story is concocted. The applicant accused persons are innocent and law-abiding citizens and have been falsely implicated in the present matter. The confession before the authorities are meaningless as it is contrary to the law and is not admissible. Taking the various grounds for bail prayed for entitlement for bail on terms and conditions. The applicant is in jail since 13.2.2026. The applicant has no previous criminal history. The investigation against the applicant is completed and complaint is fi....
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....d are independent proceedings. However, where in assessment proceedings, it is found that taxpayer has not violated any law, the same may have bearing on the criminal prosecution. 6.The liberty guaranteed by Part III of the Constitution would cover within its protective ambit not only due procedure and fairness but also access to justice and a speedy trial. There is a presumption of innocence in favour of accused pending trial. The ultimate justification for such deprivation of liberty can only be, the accused being found guilty of the offences for which they have been charged. If such a finding is not likely to be arrived at within a reasonable time some relief becomes necessary. Timely delivery of justice is part of human rights and denial of speedy justice is a threat to public confidence in the administration of justice. No material has been shown by State to demonstrate that the conduct of applicant while in jail would disentitle the applicant to be released on bail. 7.It is well settled that at pre-conviction stage, there is presumption of innocence. The object of keeping a person in custody is to ensure his availability to face the trial and to receive the sentence tha....
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....not be taken away except in accordance with the procedure established by law. Personal liberty is a constitutional guarantee. However, Article 21 which guarantees the above right also contemplates deprivation of personal liberty by procedure established by law. Under the criminal laws, a person accused of offences which are non-bailable is liable to be detained in custody during pendency of trial unless he is enlarged on bail in accordance with law. Such detention cannot be questioned as being violative of Article 21 since the same is authorised by law. But even persons accused of non-bailable offences are entitled to bail if the court concerned comes to the conclusion that prosecution has failed to establish a prima facie case against him and/or if the court is satisfied for reasons to be recorded that in spite of existence of prima facie case there is a need to release such person on bail where fact situations require it to do so. 10.Article 21 of Constitution provides that no person will be deprived of his life or liberty except by procedure established by law. The procedure established by law should be just, fair and reasonable. The presumption of innocence is applicable to ....
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....ed under Sections 132(1)(a), (h), (k) and (l) read with Section 132(5) of the Central Goods and Services Tax Act, 2017 has observed as under:- "8. In considering the application for bail, it is noted that the petitioner was arrested on 21-7-2022 and while in custody, the investigation has been completed and the charge-sheet has been filed. Even if it is taken note that the alleged evasion of tax by the petitioner is to the extent as provided under Section 132(1)(l)(i), the punishment provided is, imprisonment which may extend to 5 years and fine. The petitioner has already undergone incarceration for more than four 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 ....
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....tances suggestive of the applicant fleeing from justice or thwarting the course of justice or creating other troubles in the shape of repeating offences or intimidating witnesses and the like have been shown. Further the trial is by Magistrate and maximum punishment for offence is five years and applicant is in jail since 13.2.2026. Investigation against applicant completed and complaint filed and there is no chance that trial is completed in near future. 19.Considering the facts and circumstances of the case, nature of offence, evidence, complicity of the accused, submissions of learned counsel for the parties, period of detention and without expressing any opinion on the merits of the case, the Court is of the view that the applicant has made out a case for bail. The bail application is allowed. 20.Let the applicant Samyak Jain involved in Case No.13 of 2026, under Sections 132(1)(b), 132(1)(C), 132(1)(f), 132(1)(1), 132(1)(i) of C.G.S.T. Act, 2017, Police Station DGGI, Zonal Unit Meerut, District Meerut be released on bail on furnishing a personal bond and two sureties each in the like amount to the satisfaction of the court concerned subject to the following conditions:- ....