2023 (11) TMI 1227 - HC - GST

Seeking grant of regular bail - allegation of registration of fake firm - making fake transactions for the purpose of evasion of tax - HELD THAT - The petitioner is in custody since 04.06.2023. It is not controverted that he is suffering from advance stage of HIV positive. The challan has already been presented against the petitioner and there is no other case registered against the petitioner and criminal liability if any could be ascertained after conclusion of trial which will take sufficient long time and no purpose would be served by keeping petitioner behind bars any longer. Consequently without commenting on the merits of the case and keeping in view the medical condition of the petitioner it is observed that no purpose would be served in keeping petitioner behind bars - petitioner is ordered to be released on bail subject to conditions imposed - petition allowed.

Summary

Issues Involved:
Grant of regular bail u/s 439 of CrPC in a case involving charges u/s 420, 467, 468, 471 IPC, 11 of Central Sales Tax Act, and Section 132 of GST Act, 2017.

Details of the Judgment:

Issue 1: Petitioner's Innocence and Health Condition
The petitioner, through counsel, asserted innocence, claiming false implication in the case of alleged tax evasion due to a fake firm registration. It was highlighted that the petitioner's firm was lawfully registered under relevant Acts and regularly filed returns. Notably, the petitioner has been in custody since 04.06.2023 and is suffering from an advanced stage of HIV positive. No notice regarding tax evasion was received by the petitioner.

Issue 2: State's Allegations and Opposition
In response, the State Counsel contended that the petitioner, along with his brother-in-law, created a fake firm for tax evasion purposes through fake transactions. The co-accused, the brother-in-law, remains at large. Despite acknowledging the challan submission in court, the State emphasized the gravity of the offense and urged the dismissal of the bail petition.

Issue 3: Judicial Analysis and Decision
After evaluating the arguments and examining the records, the Court noted the petitioner's prolonged custody, health condition, and the challan submission. Recognizing the time-consuming trial process ahead, the Court deemed it unnecessary to detain the petitioner further. Consequently, the bail petition was granted, subject to conditions such as furnishing bail bonds, regular court appearances, prohibition on leaving the country without court permission, and non-tampering with prosecution evidence. Importantly, the Court clarified that the decision did not reflect any opinion on the case's merits.

This judgment by Hon'ble Mr. Justice Sanjiv Berry of the Punjab and Haryana High Court allowed the petitioner's bail plea, considering the petitioner's health condition and the absence of a compelling reason for continued detention, despite the serious charges involved.