2023 (1) TMI 47 - HC - GST

Seeking grant of regular bail - case of alleged offence under Section 132(1)(a) of the CGST Act is not made out - no intention to evade tax or to adopt any fraudulent practice - HELD THAT - Considering the nature of allegations made in the FIR and without discussing the evidence in details as well as without going into details, prima-facie, this Court is of the opinion that this is a fit case to exercise the discretion to enlarge the applicant on bail. Hence, the application is allowed and the applicant is ordered to be released on bail, on executing a bond of Rs.10,000/- with one surety of the like amount to the satisfaction of the trial Court and subject to the conditions imposed.

Summary

Issues:
Application for regular bail under Section 439 of the Code of Criminal Procedure for offences under the CGST Act, 2017.

Analysis:
The applicant sought regular bail in connection with an arrest memo dated 19/07/2022 for offences under Section 132(1)(a), 132(1)(i) read with Section 137 of the Central Goods and Service Tax Act, 2017. The applicant's counsel argued that the alleged offence under Section 132(1)(a) was not made out as there was no intention to evade tax or engage in fraudulent practices. It was contended that the case did not involve sales without invoices, further supporting the bail application. The applicant's counsel requested bail, emphasizing the nature of the offence and the applicant's role in the matter.

The respondent, represented by the learned Assistant Public Prosecutor, opposed the grant of bail citing the nature and gravity of the offence. The respondent's counsel submitted a reply along with relevant documents, which were accepted by the court. Both sides' advocates did not press for a detailed order.

After hearing the arguments and reviewing the application and documents, the court found it a fit case to exercise discretion in granting bail. The court ordered the applicant's release on bail upon executing a bond of Rs.10,000 with one surety of the same amount. The court imposed conditions such as not misusing liberty, not acting against the prosecution's interests, surrendering the passport, not leaving India without permission, providing the current address to the Investigating Officer and the court, and not changing residence without prior approval. The court specified that the applicant should be released only if not required in connection with any other offence, with the Sessions Judge authorized to take action for any breach of the bail conditions.

The court clarified that the trial court should not be influenced by the preliminary observations made during the bail order. The rule was made absolute to the specified extent, allowing for direct service of the order.