2020 (3) TMI 723 - HC - GST

Grant of Regular Bail - offence under Section 132(1)(c) of the Central Goods and Services Tax Act, 2017 - HELD THAT - Having heard the learned advocates for the parties and perusing the material placed on record and taking into consideration the facts of the case, nature of allegations, gravity of offences, role attributed to the accused, without discussing the evidence in detail, this Court is of the opinion that this is a fit case to exercise the discretion and enlarge the applicant on regular bail. Bail granted with certain conditions imposed.

Summary

Issues: Application for regular bail under Section 439 of the Code of Criminal Procedure, 1973 for an offence under Section 132(1)(c) of the Central Goods and Services Tax Act, 2017.

Analysis:
1. The applicant sought regular bail for an offence under Section 132(1)(c) of the Central Goods and Services Tax Act, 2017. The applicant had been arrested, and the application was filed under Section 439 of the Code of Criminal Procedure, 1973. The applicant's counsel argued for bail, emphasizing the nature of the offence and proposing suitable conditions.

2. The respondent-State opposed the grant of bail, citing the seriousness of the offence. Both parties did not press for a detailed reasoned order. After hearing the arguments and examining the material on record, the Court considered factors such as the duration of the applicant's arrest, the absence of a filed complaint, the nature of the allegations, and the gravity of the offences charged.

3. The Court noted that the applicant had been in custody for over 52 days without a complaint being filed against him. The offence under Section 132(1)(c) of the CGST Act carried a maximum punishment of five years, with the alleged wrongful availment of Input Tax Credit exceeding ?5 crores. Despite the arrest, no remand was sought by the concerned Department.

4. In light of the circumstances, the Court exercised discretion and granted the applicant regular bail. The decision was also influenced by the Supreme Court's ruling in the case of Sanjay Chandra Vs. CBI. The applicant was ordered to be released on bail upon executing a personal bond and fulfilling specified conditions to ensure compliance and cooperation with the investigation.

5. The conditions imposed included restrictions on liberty, surrendering of passport, regular reporting to authorities, providing residence details, and undertaking not to transfer or alienate properties. Breach of conditions empowered the Sessions Judge to take appropriate action. The Trial Court was directed not to be swayed by the observations made in the bail order during the trial.

6. The Court made the rule absolute, allowing for direct service of the order. The judgment provided a detailed analysis of the grounds for granting bail, the considerations taken into account, and the specific conditions imposed to secure the applicant's release pending trial.