2021 (12) TMI 469 - HC - GST

Application for pre-arrest bail - offence punishable under Sections 420 406 409 and 506 of the Indian Penal Code and Sections 132 1 d and 132 2 of the Goods and Service Tax Act - HELD THAT - Issue notice to the non-applicant returnable on 07.01.2022. Learned A.P.P. waives notice for the non-applicant. In the meanwhile in the event of arrest of the applicant/accused Shashikant Fakirchand Sureka in connection with Crime No.677/2021 registered with the non-applicant - Shivajinagar Police Station Khamgaon District Buldhana for the offence punishable under Sections 420 406 409 and 506 of the Indian Penal Code and Sections 132 1 d and 132 2 of the Goods and Service Tax Act he be released on interim bail on his furnishing P.R. Bond in the sum of 1, 00, 000/- with one surety in the like amount.

Summary

Issues:
1. Application for pre-arrest bail in connection with multiple offenses under the Indian Penal Code and Goods and Service Tax Act.
2. Delay in prosecution sanction and pending legal remedies against assessment orders.
3. Consideration of automatic stay provision under Section 107(7) of the GST Act for protection of applicant's liberty.

Analysis:
1. The judgment addresses an application for pre-arrest bail by the applicant, who faces charges under Sections 420, 406, 409, and 506 of the Indian Penal Code and Sections 132(1)(d) and 132(2) of the Goods and Service Tax Act in connection with a case registered by the Shivajinagar Police Station. The applicant sought interim protection alongside pre-arrest bail due to allegations of evading tax amounting to ?16.79 Crores as per the Assistant State Tax Officer's report.

2. The applicant's counsel highlighted a delay of two years in the prosecution sanction issued in 2019. It was noted that the applicant had challenged 17 assessment orders through legal remedies, with some appeals leading to refunds while others were pending. The counsel pointed out that automatic stay provisions under Section 107(7) of the GST Act apply to certain compliances, emphasizing the need for consideration of the nature of accusations and the protection of the applicant's rights.

3. Considering the circumstances, the judge issued specific orders to safeguard the applicant's liberty while ensuring compliance with legal procedures. The non-applicant was served notice returnable on a specified date. In the event of arrest, the applicant was granted interim bail upon furnishing a PR Bond and surety. Additionally, conditions were set for the applicant to report to the police station on designated days and not tamper with prosecution evidence, reflecting a balanced approach to address the legal complexities involved in the case.