2023 (10) TMI 1330 - HC - GST

Seeking grant of Regular Bail - obtaining illegal Input Tax Credit by entering into large scale financial transactions and thereby cheating the State exchequer - HELD THAT - In the facts and circumstances of the case and considering the nature of allegations, this Court is of the opinion that, discretion is required to be exercised to enlarge the applicant on regular bail. This Court, prima facie, is of the opinion that, this is a fit case to exercise the discretion and enlarge the applicant on regular bail. Hence, present application is allowed and the applicant is ordered to be released on regular bail in connection with the FIR being C.R. No. 11210015220162 of 2022 registered with DCB Police Station, Dist. Surat on executing personal bond of Rs. 10,000/- (Rupees Ten thousand only) with one surety of the like amount to the satisfaction of the learned Trial Court and subject to the conditions imposed - application allowed.

Summary

Issues involved: Application for regular bail u/s 439 of CrPC for offences u/s 409, 419, 465, 467, 468, 471, 120(B), and 34 IPC.

Details of the judgment:

1. Allegations and Arrest:
The applicant sought release on bail in connection with an FIR alleging forgery of documents to register GSTIN and obtain illegal Input Tax Credit. The applicant was arrested despite no direct allegations against him in the FIR, raising doubts about the evidence and recovery process.

2. Chargesheet and Allegations:
The chargesheet named the applicant as accused No. 4, linking him to transactions of five business entities. However, the defense argued that the chargesheet lacked concrete evidence to prove GST evasion or criminal breach of trust by the applicant.

3. Defense Arguments:
The defense contended that the applicant did not forge any documents for GST registration or bank account opening. Moreover, no evidence suggested the applicant's involvement in illegal tax evasion or passing on input tax credit, challenging the basis of the charges under Sections 409 and 419 of the IPC.

4. Prosecution's Stand:
The prosecution emphasized the seriousness of the alleged offenses, highlighting the societal impact of tax evasion. They argued against granting bail due to the gravity of the charges and the substantial financial loss to the government.

5. Court's Decision:
Considering the applicant's detention since November 2022, completion of investigation, and absence of GST department actions against him, the Court exercised discretion to grant regular bail. Citing legal precedent and the release of co-accused, the Court ordered the applicant's release on bail with specific conditions to ensure compliance and appearance during the trial.

6. Bail Conditions:
The applicant was directed to execute a personal bond, surrender passport, report monthly to the police station, and adhere to other specified conditions. Any breach would empower the Sessions Judge to take appropriate action. The Court clarified that its observations at the bail stage should not influence the trial proceedings.

7. Conclusion:
The Court allowed the application for regular bail, stressing the need to balance the gravity of the charges with the applicant's right to liberty. The ruling aimed to ensure the applicant's presence during trial while upholding legal principles and precedents.

End of Summary