2020 (1) TMI 879 - HC - GST

Enlargement on bail - wrongly availed input tax credit - HELD THAT - In view of the undertaking submitted by the petitioner to fully cooperate with the investigating agency and provide the information/documents asked for by the investigating agency, this Court is of the opinion that the bail applications filed by the petitioner deserve to be accepted. Bail application allowed subject to condition imposed.

Summary

Issues:
Bail application under Section 439 Cr.P.C. for petitioner in custody for offences under Sections 420, 467, 468, 471, 120-B IPC and Section 132[1][i] of Rajasthan Goods and Service Tax Act.

Analysis:
The petitioner, a Chartered Accountant, filed bail applications under Section 439 Cr.P.C. due to being in custody for alleged offences under various sections, including Section 132(1)(i) of the Rajasthan Goods and Service Tax Act. The petitioner's counsel argued that the petitioner merely assisted clients in registering firms and it was the department's responsibility to verify the details provided. The counsel highlighted the stringent punishments under Section 132(1)(i) for wrongly received input tax credit exceeding specified amounts. The counsel emphasized that the exact amount wrongly availed by the petitioner was yet to be determined by authorities.

The State's Additional Advocate General and the GST Department's Special Public Prosecutor acknowledged the ongoing investigation and the complexity in ascertaining the actual transactions. They did not oppose bail if the petitioner cooperated with the investigation. Considering the petitioner's profession, age, and the duration of incarceration, the court found merit in granting bail. The court emphasized the petitioner's undertaking to fully cooperate with the investigating agency and provide necessary information. Consequently, the bail applications were allowed, and the petitioner was granted bail upon furnishing a personal bond and sureties, with conditions to appear in court and deposit her passport.

In conclusion, the court granted bail to the petitioner, a Chartered Accountant, in connection with the mentioned FIRs, based on the petitioner's cooperation undertaking and the specific conditions imposed by the court. The judgment highlighted the importance of cooperation with the investigating agency and compliance with court directives to maintain the granted bail.