2022 (7) TMI 566 - HC - GST

Seeking grant of Bail - availment and utilization of fraudulent input tax credit without any receipt of the goods - issuance of invoices from bogus firms without any supply of bills - HELD THAT - There are merit in the submissions of the learned counsel for the applicant. The substantive allegations against the applicant and Co-accused Mayank Gautam are similar in nature and, therefore, the applicant is also entitled for being enlarged on bail pending conclusion of the trial. Let the applicant, Ashish Rajput be released on bail - application allowed.

Summary

Issues: Bail application under Sections 132(1)(b), 132(1)(c), 132(1)(i) of Central Goods and Services Tax Act, 2017

Analysis:
The bail application was filed by the applicant in a case involving alleged offenses under Sections 132(1)(b), 132(1)(c), 132(1)(i) of the Central Goods and Services Tax Act, 2017. The applicant was seeking bail in Case Crime No. 1 of 2021 at the Directorate General of GST Intelligence (DGGI), Dehradun Zonal Unit. The applicant claimed innocence and argued that he was falsely implicated in the case. The applicant's counsel highlighted that the co-accused had already been granted bail by a Co-ordinate Bench of the Court. The applicant contended that he had been in custody since 29-09-2021 and that there was no possibility of tampering with evidence. The applicant assured full cooperation in the investigation and pledged not to misuse the liberty of bail.

The opposite party argued against granting bail to the applicant based on the ground of parity, asserting that the applicant played a significant role in the alleged offenses by being the main person behind the creation of a bogus firm in partnership with the co-accused. However, after considering the submissions from both sides and examining the facts and circumstances of the case, the Court found merit in the applicant's arguments. The Court noted that the allegations against the applicant and the co-accused were similar in nature, leading to the conclusion that the applicant was entitled to be released on bail pending the conclusion of the trial.

The Court granted bail to the applicant, Ashish Rajput, in Case Crime No. 1 of 2021 under the specified sections of the Central Goods and Services Tax Act, 2017. The bail was subject to certain conditions, including furnishing a personal bond and reliable sureties, not tampering with evidence, not influencing any witness, appearing before the trial court as required, and refraining from any actions that could obstruct the investigation or trial process. The prosecution was given the liberty to move a bail cancellation application before the Court in case of any breach of the imposed conditions.