2021 (1) TMI 1183 - HC - GST

Seeking grant of Bail - fake invoices - bogus ITC - non-existent firms - dummy sales - availment of irregular credit - offence under Sections 69 read with clauses (b), (c) (1)1 of Section 132 of the Odisha GST Act, 2017 - HELD THAT - Considering the submissions made, facts and circumstances of the case, length of his detention in custody and nature of accusation, it is directed that the petitioner be released on bail with some stringent terms and conditions as deemed just and proper by the learned SDJM, Rourkela and GST Enforcement Unit, Jajpur, Jajpur Road, functioning under the Commissionerate of CT and GST, Odisha with the conditions imposed. Bail application allowed.

Summary

Issues: Bail application under Section 439 of CrPC based on lack of concrete evidence for tax evasion, lengthy custody period, and willingness to abide by stringent bail conditions.

In this judgment by the Orissa High Court, the petitioner filed a bail application under Section 439 of the CrPC in connection with a case registered under the Odisha GST Act. The petitioner argued that the prosecution report against him was primarily based on statements by co-accused and lacked concrete evidence to establish tax evasion. The petitioner had availed Input Tax Credit (ITC) and paid more GST than the alleged bogus ITC amount. It was highlighted that the charges against the petitioner were revenue neutral, and the prosecution report contained amounts without legal basis. The petitioner had been in custody since January 2020, and it was argued that due to completed investigation and cooperation, bail should be granted. Reference was made to similar bail grants in other cases, and the petitioner undertook to comply with all bail conditions.

The State vehemently opposed the bail prayer, but considering the facts, circumstances, and the period of custody, the Court directed the petitioner's release on bail. The bail was subject to stringent terms and conditions, including appearing before the court, non-tampering with evidence, depositing the passport, obtaining permission to leave the state, and cooperating with further investigation. Any violation of these conditions would result in bail cancellation. The judgment emphasized the importance of complying with the bail conditions and concluded by disposing of the bail application, allowing the petitioner to use the soft copy of the order available on the High Court's website as a certified copy.