2023 (8) TMI 306 - HC - GST

Seeking grant of Regular Bail - availing ITC in relation to alleged Firms - Section 132 of the Central Goods and Services Tax Act, 2017 and Punjab Goods and Services Tax Act, 2017 read with Section 20 of the Integrated Goods and Services Tax Act, 2017 - HELD THAT - Concededly in the instant case, the maximum sentence specified under Section 132 of the C.G.S.T. Act is up to five years of rigorous imprisonment and the petitioner having already undergone custody for a period of two years, five months and twenty one days (as on 17.05.2023), would be entitled to bail. Furthermore, one of the co-accused in the instant Complaint Case No. COMA/1519/2021 dated 04.02.2021 has already laid challenge to the provisions of Section 69 and 132 of the C.G.S.T. Act by way of filing a writ petition bearing CWP No. 7147 of 2021 titled as ANKUR GARG VERSUS UNION OF INDIA AND OTHERS 2021 (3) TMI 1427 - PUNJAB AND HARYANA HIGH COURT wherein trial qua the petitioner therein was ordered to be stayed vide order dated 26.03.2021 passed by a Division Bench of this Court. Thus, trial in the case is likely to take some time to conclude and no useful purpose would be served by keeping the petitioner behind bars for indefinite period. It is observed that the State/ Prosecuting Agency/ State police shall be at liberty to observe the behaviour of the petitioner during bail period, and in case it feels that the petitioner is indulging in influencing any of the witnesses or tampering with the prosecution evidence in any manner or otherwise causing interference with the progress of trial, it shall be open for the State/Prosecuting Agency/State police to move the trial Court for cancellation of bail, which shall be decided by the trial Court on merits. The petitioner is ordered to be released on regular bail subject to his furnishing bail/surety bonds to the satisfaction of the trial Court/Illaqa Magistrate/Duty Magistrate concerned. However, the concerned Station House Officer shall be informed about the release of petitioner and the petitioner shall inform the concerned Station House Officer about his address at which he intends to reside during the pendency of case/trial and any change in the address shall be communicated to the concerned Station House Officer, forthwith - Petition allowed.

Summary

Issues:
The judgment involves a petition seeking regular bail under Section 439 of the Code of Criminal Procedure in a case related to offenses under the Central Goods and Services Tax Act, 2017, and Punjab Goods and Services Tax Act, 2017.

Details of the Judgment:

Issue 1: Filing of Petition for Regular Bail
The petitioner filed a petition seeking regular bail in a complaint case under Section 132 of the C.G.S.T. Act and the P.G.S.T. Act read with Section 20 of the I.G.S.T. Act. The petitioner was accused of forging identity to create partnership firms used for fraudulent activities.

Issue 2: Petitioner's Contentions
The petitioner, a proprietor of a Cyber Cafe, claimed innocence and stated being falsely implicated in the case. The petitioner highlighted the stringent bail conditions imposed and the failure to furnish bail bonds, leading to custody. Previous bail applications were dismissed, prompting the current petition for regular bail.

Issue 3: Respondent's Opposition
The respondent opposed the bail plea citing the gravity of the offense, alleging the petitioner's involvement in creating fake firms for fraudulent activities causing substantial financial losses. Concerns were raised regarding witness influence and trial delay if bail was granted.

Judgment
The Court noted the maximum punishment under Section 132 of the C.G.S.T. Act and the petitioner's custody period. Considering the likelihood of a prolonged trial due to pending challenges to related provisions, the Court granted bail. The State was directed to monitor the petitioner's conduct and could seek bail cancellation if necessary. The petitioner was ordered to fulfill bail conditions, inform authorities of residence, and comply with reporting requirements.

This judgment allows the petitioner's release on regular bail, subject to specified conditions, emphasizing the need for monitoring the petitioner's behavior during the trial period.