2021 (9) TMI 1297 - HC - GST

Seeking grant of bail - petitioner was only a servant of one Happy Nagpal, who was overall incharge of the Company - matter pertains to tax evasion by two companies - HELD THAT - Keeping in view the fact that the petitioner had no role to play in the tax evasion as he was only a servant for the domestic help of the proprietor of the company, let notice of motion be issued to respondents for 27.09.2021.

Summary

Issues: Bail conditions - Excessive and harsh

The petitioner, represented by Dr. Kanu Sharma, argued that he was merely a servant of a company's proprietor, Happy Nagpal, who was responsible for the tax evasion by two companies, M/s Gurasis Enterprises and M/s R.S.Traders. The petitioner had no involvement in the tax evasion and was solely responsible for domestic help. The trial court initially granted bail with stringent conditions, requiring bail bonds of &8377; 1,00,00,000/- and bank guarantee/FDR for &8377; 60,00,000/-. Subsequently, the Additional Sessions Judge directed the trial court to reconsider the surety and bank guarantee/FDR amounts. The trial court then reduced the amounts to &8377; 50,00,000/- with two sureties and &8377; 30,00,000/- for bank guarantee/FDR. The petitioner contended that these conditions were excessive and harsh, considering his lack of involvement in the tax evasion.

The court acknowledged the petitioner's limited role as a servant for domestic help and his lack of connection to the tax evasion activities of the companies. Considering these facts, the court found the bail conditions to be excessive and harsh. Consequently, the court decided to issue a notice of motion to the respondents for further consideration on 27.09.2021. The judgment highlighted the importance of proportionality in setting bail conditions, especially when the accused's involvement in the alleged offense is minimal, as in this case where the petitioner was merely a servant with no direct involvement in the tax evasion schemes of the companies.