2023 (3) TMI 1323 - HC - GST

Seeking grant of regular bail - availment of input tax credit by fabricating invoices resulting in the generation of bills - evasion from payment of Goods and Services Tax (GST) - bail rejected on the ground that the petitioner is the main accused in a scam involving evasion of GST to the tune of crores of rupees and that in case he is released on bail, he is likely to influence the witnesses and in turn the course of his trial. HELD THAT - Primarily, the evidence collected by the State against the petitioner is documentary; investigation in this case is complete; it is not the case of the State that during the course of investigation the petitioner did not cooperate; the petitioner has already undergone actual custody of nearly 01 year and 05 months; even if convicted, the maximum sentence which can be imposed on him is 05 years; most of the material witnesses for the prosecution, at the precharge stage, stand examined; the proceedings that the petitioner faces are presently at the pre-charge stage in which 37 prosecution witnesses still remain to be examined and that in case the petitioner is even put to trial, the same is likely to take a long time to conclude. The present case is considered to be a fit one in which the petitioner be directed to be released on regular bail. Resultantly, subject to the satisfaction of the CJM/Duty Magistrate, Gurugram, which shall include the condition of the deposit of the petitioner's valid passport, if any, the petitioner is directed to be released on bail. Application allowed.

Summary

Issues: Regular bail application under Section 439 Cr.P.C. in a case involving evasion of GST and fabrication of invoices.

Analysis:
1. Case Background: The petitioner filed a bail application under Section 439 Cr.P.C. in a case involving evasion of GST and fabrication of invoices under various tax acts.

2. Prosecution's Allegations: The prosecution alleged that the petitioner, managing three firms, availed input tax credit through fabricated invoices, leading to evasion of GST amounting to crores of rupees.

3. Petitioner's Defense: The petitioner, through senior counsel, claimed innocence, stating false implication, custody since September 2021, and highlighted that charges were not framed. The defense argued that the evidence was primarily documentary, and the petitioner's release would not impact the ongoing investigation.

4. State's Opposition: The State opposed bail, citing the gravity of the scam, potential witness influence, and trial interference if the petitioner was released.

5. Court's Considerations: The court noted that the evidence against the petitioner was mainly documentary, investigation was complete, and the petitioner had cooperated during the process. It highlighted the lengthy trial process ahead and the limited maximum sentence of 5 years.

6. Decision: Considering the circumstances, the court granted regular bail to the petitioner, subject to the satisfaction of the CJM/Duty Magistrate, Gurugram, with conditions, including the deposit of the petitioner's passport if applicable.

7. Clarification: The court clarified that the bail decision was specific to the current application and did not reflect an opinion on the case's merits, emphasizing a neutral stance on the matter.