2022 (3) TMI 1372 - HC - GST

Seeking grant of Regular Bail - availment of fake GST credit - Creation of fake firms - HELD THAT - After hearing learned counsel for the parties, without commenting anything on merits of the case and considering the long custody of the petitioner and the fact that no investigation is pending against him and it will take some time in conclusion of the trial, as only 01 PW has been examined so far, this petition is allowed and the petitioner is directed to be released on regular bail subject to furnishing his bail bonds and two sureties of the like amount, to the satisfaction of the trial Court/Illaqa Magistrate/Duty Magistrate, concerned. Petition allowed.

Summary

Issues:
Grant of regular bail in a criminal case involving multiple sections of the Indian Penal Code, CGST Act, and I.T. Act.

Analysis:
The petitioner sought regular bail in a case involving FIR No.111 dated 25.04.2019 under various sections, including 420, 467, 468, 471, 120-B, 201 IPC, Sections 132(1)(i) & 132 (I)(iv) of CGST Act, and Sections 65, 66D & 71 of I.T. Act, registered at Police Station Cheeka, District Kaithal. The petitioner relied on a previous order granting bail to a co-accused, highlighting that the main evidence against the petitioner was his own disclosure statement. The petitioner was alleged to have been involved in creating forged firms, causing substantial losses to the State Exchequer. The court noted that the investigation was complete, the challan was presented, and the offenses were triable by the Magistrate's Court.

The State counsel presented a custody certificate indicating that the petitioner had been in custody for over 8 months and 24 days. It was revealed that the petitioner had allegedly raised bogus invoices exceeding ?5.00 crores, contributing to losses in the government exchequer by claiming GST tax credit. Despite the serious allegations, the court considered the extended custody of the petitioner, the completion of the investigation, and the slow progress of the trial, with only one prosecution witness examined out of a total of 40. The court, without delving into the case's merits, granted the petitioner regular bail upon furnishing bail bonds and two sureties of the same amount, to the satisfaction of the trial Court/Magistrate.

In conclusion, the judgment focused on the petitioner's prolonged custody, the completion of the investigation, and the slow pace of the trial proceedings. The court granted regular bail to the petitioner, emphasizing the need for bail conditions to be met, despite the serious nature of the charges and the significant financial implications of the alleged offenses.