2021 (3) TMI 1236 - HC - GST

Seeking grant of Bail - allegation is that the petitioner's company had failed to submit returns and after having collected tax from its customer the company did not remit the tax to the Government - offence punishable under Section 132(1) (d) of The Central Goods and Service Tax, 2017 - HELD THAT - Though the learned counsel for the petitioner submited that already a sum of ₹ 5 crore had been paid as input tax, it was disputed by the respondent. In order to give an opportunity to the petitioner to produce account and tax payment particulars to the respondent, this court is inclined to grant interim bail to the petitioner till 08.04.2021 on certain conditions imposed. Application allowed.

Summary

Issues:
1. Bail application under Section 132(1)(d) of The Central Goods and Service Tax, 2017.
2. Allegation of making outward supplies without discharging taxes.
3. Failure to respond to summons and produce accounts.
4. Dispute over payment of input tax.
5. Granting interim bail with conditions.

Analysis:
Issue 1: The petitioner, an Executive Director of a company engaged in the supply of White Duplex Board, seeks bail after being remanded for an offence under Section 132(1)(d) of The Central Goods and Service Tax, 2017.

Issue 2: The respondent alleges that the company made taxable supplies without remitting taxes to the Government, supported by bank statements showing substantial payments received but not paid to the authorities. The petitioner's non-response to summons led to the registration of a complaint under Section 132(1)(d).

Issue 3: The petitioner's counsel argues that the company regularly submitted returns and produced accounts in response to summons, emphasizing a payment of ?5 crores towards input tax disregarded by the respondent. The petitioner expresses willingness to cooperate and present all relevant accounts for verification.

Issue 4: The respondent contends that despite receiving significant payments inclusive of taxes, the company failed to fulfill its tax obligations. Disputes arise over the actual payment of input tax, highlighting a factual discrepancy between the parties.

Issue 5: In light of the factual disputes and to facilitate the petitioner's submission of account and tax payment details, the court grants interim bail until a specified date with stringent conditions, including appearance before the respondent, non-commitment of similar offences, and prohibition of absconding or tampering with evidence. Breach of conditions empowers the Magistrate to take appropriate legal action, as outlined by legal precedents.

This detailed analysis of the judgment outlines the key issues addressed by the court, the arguments presented by both parties, and the conditions imposed for granting interim bail, providing a comprehensive overview of the legal proceedings.