2020 (2) TMI 998 - HC - GST

Grant of Regular Bail - wrongful availment of input tax credit which is also passed on -offence punishable u/s 132(1)(b) of CGST Act - HELD THAT - The applicant is in jail since 23.12.2019 - However, for the alleged transaction, it is always open for the respondent department to take departmental action for recovery of penalty against the applicant. The applicant, under the instructions, submitted that without prejudice to his rights and contentions, applicant is ready and willing to deposit ₹ 25 lakh before the respondent No.2 within a period of 8 weeks from the date of his actual release. Considering the case, the present application is allowed - The applicant is ordered to be released on regular bail, subject to conditions.

Summary

Issues: Regular bail application under Section 439 of the Code of Criminal Procedure, 1973 for an offence under Section 132(1)(b) of CGST Act, 2017.

Analysis:
1. Nature of Offence and Bail Application: The applicant filed a bail application under Section 439 of the Code of Criminal Procedure, seeking regular bail in connection with an offence under Section 132(1)(b) of the CGST Act, 2017. The applicant's advocate argued for bail, emphasizing the nature of the offence and proposing suitable conditions for bail.

2. Opposition by the Respondent: The respondent, represented by the APP, opposed the grant of bail citing the nature and gravity of the offence. However, both parties did not press for a detailed reasoned order, leading to the court's assessment based on the material on record and the arguments presented.

3. Court's Decision and Considerations: After hearing both sides and evaluating the facts, allegations, gravity of offences, and the accused's role, the court exercised discretion to grant the applicant regular bail. The court considered various aspects, including the applicant's detention since a specific date, the nature of the alleged offence related to tax credit, and the possibility of departmental action for penalty recovery.

4. Conditions for Bail: The court ordered the applicant's release on regular bail upon executing a personal bond and surety, along with specific conditions. These conditions include not misusing liberty, cooperating with authorities, surrendering passport, marking presence at the police station monthly, providing address details, and depositing a specified amount within a set timeframe.

5. Precedent and Legal Reference: The court referred to the law laid down by the Hon'ble Apex Court in a specific case, highlighting the legal principles guiding the decision-making process in matters related to bail applications.

6. Final Orders and Trial Instructions: The court allowed the bail application, specifying the bail conditions, release requirements, and the trial court's role in monitoring compliance. The court emphasized that the trial court should not be influenced by the prima facie observations made during the bail order, ensuring a fair trial process.

This detailed analysis outlines the key aspects of the judgment, including the legal framework, arguments presented, court's considerations, conditions for bail, legal references, and instructions for trial proceedings.