2021 (9) TMI 1348 - HC - GST

Seeking grant of bail - claiming of input tax credit without any transportation of goods - triable offence or not - compoundable offence or not - HELD THAT - In the facts and circumstances of the present case and looking to the seriousness of the offence(s) alleged against the petitioner without expressing any opinion on the merits of the case, it is not considered a fit case to enlarge the petitioner on bail under Section 439 Cr.P.C. This bail application stands dismissed.

Summary

Issues: Bail application under Section 439 Cr.P.C. in connection with offence(s) under Section 132 CGST Act, 2017.

Analysis:
The petitioner filed a bail application under Section 439 Cr.P.C. in connection with a case filed by the Office of Commissioner, CGST Jaipur for offences under Section 132 CGST Act, 2017. The petitioner's counsel argued that the petitioner was falsely implicated, the offence is triable by a Magistrate, compoundable, and carries a maximum punishment of 5 years. It was also mentioned that the trial process might be prolonged, and no show cause notices were issued to the petitioner, hence requesting bail for the petitioner.

The respondent's counsel contended that the petitioner and others had claimed input tax credit of ?30.11 Crores without actual transportation of goods, with the total credit claimed amounting to thousands of Crores. The investigation against the petitioner was still ongoing, and based on these grounds, the respondent requested the dismissal of the bail application.

After considering the arguments from both sides and the seriousness of the alleged offence without expressing any opinion on the case's merits, the judge concluded that it was not a suitable case to grant bail under Section 439 Cr.P.C. Consequently, the bail application was dismissed.