2021 (10) TMI 1309 - HC - GST

Seeking grant of Bail - compoundable offence u/s 138 of NI Act - offence punishable under Sections 132(1)(b) (c)(f)(l) of Central Goods and Services Tax Act 2017 read with Sub-Section 5 of Central Goods and Services Tax Act 2017 - HELD THAT - Having regard to the totality of the facts and circumstances of the case and looking to the custody period as also the fact that conclusion of the proceedings is likely to take some time and without expressing any opinion on the merits of the case this Court deems it just and proper to grant bail to the accused petitioner under Section 439 Cr.P.C. Bail application allowed.

Summary

Issues Involved: Bail application under Section 439 Cr.P.C. for an accused arrested in connection with a GST offence under Sections 132(1)(b)(c)(f)(l) of CGST Act, 2017.

Analysis:

1. Nature of Offence and Bail Application:
The petitioner was arrested in connection with a complaint under Sections 132(1)(b)(c)(f)(l) of the Central Goods and Services Tax Act, 2017. The bail application was filed under Section 439 Cr.P.C. by the petitioner, who had been in custody since a specific date.

2. Arguments of Petitioner and Respondent:
The petitioner's counsel argued that the offence was triable by a Magistrate and compoundable by the Commissioner, highlighting the absence of criminal antecedents of the petitioner. On the other hand, the respondent's counsel vehemently opposed the bail application, citing the involvement of a significant amount exceeding 200 crores and requested more time to present arguments.

3. Court's Decision and Reasoning:
The Court, after considering the facts, circumstances, and the period of custody, decided to grant bail to the accused petitioner under Section 439 Cr.P.C. The Court clarified that the decision to grant bail was made without expressing any opinion on the merits of the case. The Court emphasized the importance of the totality of facts and the likelihood of the proceedings taking considerable time.

4. Bail Conditions and Release Order:
The Court allowed the bail application and directed the release of the accused petitioner on bail. The petitioner was required to execute a personal bond of ?50,000 along with two sureties of ?25,000 each to the satisfaction of the trial court. These conditions were imposed to ensure the petitioner's appearance before the court on all hearing dates and as required until the completion of the trial.

In conclusion, the High Court of Rajasthan granted bail to the accused petitioner in connection with the GST offence under specific sections of the CGST Act, 2017, considering various factors and without expressing any opinion on the case's merits. The Court imposed specific conditions for the petitioner's release on bail, emphasizing the importance of compliance with the bail terms until the trial's completion.