2019 (3) TMI 1622 - HC - GST

Requirement of deposit of a sum of ₹ 1 Crore for grant of bail - alleged offence u/s 132(1)(a) CGST Act - violation of Provisions of CGST Act and Rules made thereunder - Department had not issued any SCN to the applicant in respect of alleged evasion of Tax of ₹ 94 Crores - HELD THAT - This Court is of the opinion, that no interference is required by this Court in the impugned orders passed by the court below. Accordingly, application for quashing of the condition imposed by the court below in the present case is hereby rejected Application dismissed.

Summary

Issues involved: Application to quash condition of depositing ?1 Crore in Government Treasury within three months from release on bail in a GST evasion case.

Analysis:
1. Allegations of False Implication:
The applicant, involved in a GST evasion case, sought to quash the condition of depositing ?1 Crore in the Government Treasury within three months from release on bail, claiming innocence and false implication. The applicant argued that no show cause notice was issued by the Department regarding the alleged tax evasion of ?94 Crores. The court had imposed the deposit condition, which the applicant deemed harsh and illegal.

2. Opposition by the Department:
The opposite party and the Assistant Government Advocate opposed the applicant's prayer, asserting the applicant's active involvement in GST evasion exceeding ?94 Crores, contravening the Central Goods and Service Tax Act, 2017, and its rules. The Department contended that the condition was justified given the severity of the alleged offense.

3. Court's Decision:
After considering arguments from both sides and reviewing the court orders and the application, the Court found no grounds to interfere with the impugned orders. Consequently, the application to quash the condition imposed by the lower court was rejected, upholding the requirement for the applicant to deposit ?1 Crore towards GST within three months from the date of release on bail.

In summary, the High Court dismissed the applicant's plea to quash the condition of depositing ?1 Crore in the Government Treasury within three months from release on bail in a GST evasion case, citing lack of merit in the applicant's claims of false implication and the seriousness of the alleged tax evasion. The Court upheld the lower court's decision, emphasizing the need for compliance with the GST laws and regulations.