2019 (5) TMI 1756 - HC - GST

Bail application - allegation of creating bogus firms/companies solely for the purpose of generating fraudulent credit and issuance of GST invoices without any sale/purchase and actual movement of goods - offence(s) punishable under Section(s) 132(1)(B) (C) and Sections 16(1)(2) and 31 (1) of the Central Goods Service Tax Act, 2017 - HELD THAT - In view the fact that charge-sheet has been filed in the matter, without expressing any opinion on the merits of the case, it is deemed just and proper to grant bail to the petitioner(s) under Section 439 Cr.P.C. - bail application allowed.

Summary

Issues:
Arrest under Central Goods & Service Tax Act, 2017 for creating bogus firms/companies and issuing fake invoices to claim GST benefits. Bail application filed under Section 439 Cr.P.C.

Analysis:
The petitioner was arrested in connection with FIR No.01/2018-19 for offenses under Section 132(1)(B) & (C) and Sections 16(1)(2) and 31(1) of the Central Goods & Service Tax Act, 2017. The prosecution alleged that the petitioner created bogus firms/companies to generate fraudulent credit and issue GST invoices without actual sale/purchase of goods. The defense argued that the allegations were false, stating the petitioner did not create the firms/companies in question. It was highlighted that the petitioner had been in custody since a specific date, and the investigation was already completed with a charge-sheet filed. The defense emphasized that the offenses were triable by a magistrate, seeking bail for the petitioner.

The Special Public Prosecutor vehemently opposed the bail application, presenting a detailed reply mentioning the material collected during the investigation. It was asserted that the petitioner was involved in creating bogus firms/companies and preparing fake invoices to claim unpaid GST benefits, making him ineligible for bail. Despite the opposition, the court, without expressing any opinion on the case's merits, decided to grant bail to the petitioner under Section 439 Cr.P.C. considering the overall facts and circumstances, especially since a charge-sheet had been filed.

Consequently, the bail application under Section 439 Cr.P.C. was allowed, directing the release of the petitioner upon executing a personal bond of ?50,000 with two sureties of ?25,000 each to the satisfaction of the trial court. The conditions required the petitioner to appear before the court on every hearing date and as needed until the trial's conclusion.