2022 (8) TMI 402 - HC - GST

Maintainability of petition - seeking direction to deposit of an amount of Rs.1.25 crores within seven days and was further directed to show certain documents which may reflect that his liability is lesser - HELD THAT - In any case, it would be appropriate at least 20% of the GST to the tune of Rs.03.00 crores be deposited by the petitioner. The petitioner has already deposited an amount of Rs.2.28 crores approx. In the circumstances, let the balance amount be deposited to make it Rs.3.00 crores, within eight weeks from today and the petitioner is directed to join the investigation as and when directed by the senior intelligence officer - List on 23.01.2023 and till then the petitioner be not arrested, subject to payment of aforesaid amount and also joining of investigation.

Summary

Issues: Bail application rejection due to failure to deposit amount, compliance with imposed condition, deposit of GST arrears, joining investigation

Bail Application Rejection:
The petitioner's bail application was rejected on the grounds of failure to deposit a specified amount within the given time frame. The learned counsel for the petitioner referred to a chart showing various payments made after the specified date, indicating compliance with the condition imposed. The respondent's counsel cited a previous case where the court had ordered a deposit of arrears of GST to the extent of 25%, but the petitioner argued it was a voluntary submission in that case. The court noted the petitioner had already deposited a significant amount and directed the balance to be deposited to reach a total of Rs.3.00 crores within eight weeks. The petitioner was also directed to join the investigation as required.

Deposit of GST Arrears:
The court considered it appropriate for the petitioner to deposit at least 20% of the GST amounting to Rs.3.00 crores. The petitioner had already deposited around Rs.2.28 crores, and the court ordered the balance to be deposited within eight weeks. The petitioner was directed to join the investigation when instructed by the senior intelligence officer.

Joining Investigation:
The court directed the petitioner to join the investigation as and when directed by the senior intelligence officer. The petitioner was granted relief from arrest until the next hearing date on 23.01.2023, subject to the payment of the specified amount and cooperation in the investigation process.