2021 (9) TMI 259 - HC - GST

Seeking grant of bail - huge loss of GST, sale tax etc. - forgery of documents for the purpose of illegal transportation of coal, limestone etc. by way of export and import between India and Bangladesh (cross-border trade) - HELD THAT - During enquiry, it was learnt from some reliable sources that the number plates of some of the trucks carrying coal were also fake and those were suspected to be stolen vehicles. It is stated in the FIR that an illegal transportation and export business of coal is going on in Karimganj district in connivance with coal suppliers, coal exporters and coal export-import associations by the illegal means. This Court is of the opinion that if the liberty of bail is granted to the accused at the present stage of investigation, the entire investigation is likely to be hampered - bail application dismissed.

Summary

Issues: Bail application under Section 439 Cr.P.C. in connection with a case involving forgery of documents for illegal transportation of coal, limestone, etc. for cross-border trade with Bangladesh.

Analysis:
The accused filed a bail application under Section 439 Cr.P.C. seeking release in connection with a case involving various sections of the IPC related to forgery and illegal transportation of goods. The accused, engaged in export and import trade with Bangladesh, argued for bail citing compliance with regulations and police interrogation. The defense highlighted the accused's business history and urged for bail due to prior police questioning. On the other hand, the Additional Public Prosecutor opposed the bail application, emphasizing the serious nature of the allegations. The prosecution alleged that the accused, along with others, engaged in illegal export and import activities, evading GST payments and using fake documents for coal transportation. The case involved a coal syndicate operating without proper licenses, causing significant financial losses to the state. The FIR detailed the seizure of coal-loaded trucks suspected of carrying illegally obtained coal using forged documents. The prosecution contended that the matter required thorough investigation as it was still in the preliminary stage.

The Court noted that the accused had been in judicial custody since a specific date. Upon scrutinizing the case diary and statements recorded under Section 164 Cr.P.C., the Court found prima facie evidence indicating the accused's involvement in illegal activities related to coal export and import. The accused was suspected of using forged documents, overloading trucks, avoiding GST payments, and stealing coal from banned mining sites. The Court expressed concern that granting bail at this stage could impede the ongoing investigation. Consequently, the bail application was rejected, and the investigating officer was instructed to expedite the investigation due to the accused's prolonged judicial custody. The Court directed the return of the case diary, effectively disposing of the bail application.