2021 (12) TMI 1227 - HC - GST

Seeking grant of Bail - input tax credit - forged documents - HELD THAT - There is nothing in the record to show whether the input credit actually benefited the applicant. There is no evidence that the applicant was benefited from the aforesaid input credit tax. Courts have taken notice of the overcrowding of jails during the current pandemic situation . These circumstances shall also be factored in while considering bail applications on behalf of accused persons. The applicant is entitled to be enlarged on bail - application allowed.

Summary

Issues: Bail application under Section 132 (1) (B) (I) C.G.S.T. Act

Analysis:
- The bail application was filed by the applicant after being rejected by the Additional Sessions Judge, Agra, in connection with Complaint no. 691 of 2021 at Police Station- Hariparvat, District- Agra, under Section 132 (1) (B) (I) C.G.S.T. Act. The applicant had been in jail since 19.08.2021 following the FIR.
- The department alleged that the applicant falsely claimed input tax credit of ?9,24,667 based on forged documents. The applicant's counsel argued that there was no evidence to prove that the input credit benefited the applicant directly. The contention was that at most, the applicant facilitated the wrongful availment of input tax credit. The matter of the tax liability is still under adjudication.
- The applicant's counsel assured that the applicant would not abscond and would cooperate fully in the legal proceedings. It was emphasized that the applicant would not tamper with evidence or influence witnesses.
- The State's counsel failed to counter the applicant's submissions effectively and acknowledged that the applicant had no prior criminal record apart from this case.
- The court considered the impact of the COVID-19 pandemic on jail overcrowding and bail applications. In light of the arguments presented, the court found merit in the applicant's case and granted bail without delving into the case's merits.
- The court ordered the release of the applicant on bail upon furnishing a personal bond and two sureties, each in the same amount, subject to specific conditions. These conditions included not tampering with evidence, not influencing witnesses, appearing before the trial court as required, and refraining from any actions to dissuade disclosure of facts or tamper with evidence. The prosecution was given the right to move for bail cancellation in case of any breach of these conditions.