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2024 (1) TMI 126 - HC - GST


Issues involved:
1. Petition seeking cancellation of bail granted to the accused under Section 439(2) of Cr.P.C.
2. Allegations of suppression of value of taxable supplies and non-issuance of invoices to evade GST payment.
3. Dismissal of bail application by Additional Chief Metropolitan Magistrate and subsequent grant of bail by Principal Sessions Judge.
4. Examination of reasons for bail grant in conformity with CGST Act provisions.
5. Comparison of Section 69(2) of CGST Act with Section 19 of Prevention of Money Laundering Act.
6. Requirement of recording reasons for arrest and conveying grounds of arrest to the accused.
7. Absence of reasons for arrest in the arrest memo and implications on the case.
8. Concerns regarding findings made by Sessions Judge influencing trial proceedings.

Details of the Judgment:

The petitioner, a Senior Intelligence Officer, filed a petition seeking cancellation of bail granted to the accused, Shri Dhivi Nellaiyah, based on allegations of GST evasion through suppression of taxable supplies and non-issuance of invoices. The respondent had been arrested and remanded to judicial custody following a search and seizure under the CGST Act. The bail application was initially dismissed by the Additional Chief Metropolitan Magistrate but later granted by the Principal Sessions Judge, leading to the current petition for cancellation of bail.

The Court considered whether the reasons for bail granted by the Sessions Judge aligned with the provisions of the CGST Act and whether the necessary criteria for arrest under Section 69(2) were met. The Judge noted similarities between Section 69(2) of the CGST Act and Section 19 of the PMLA, emphasizing the importance of recording reasons for arrest to substantiate the belief that the accused should be detained for further investigation.

It was highlighted that the reasons for arrest should be documented in writing to ensure clarity and prevent arbitrary decision-making. The Court raised concerns about the absence of reasons for arrest in the provided arrest memo, emphasizing the significance of conveying the grounds of arrest to the accused. The petitioner argued that the reasons stated in the remand report were not sufficient for the accused to understand the basis of their custody.

Furthermore, the Court addressed the petitioner's apprehension regarding the Sessions Judge's findings influencing the trial proceedings. It was clarified that the decision on bail should not impact the judgment of conviction or acquittal, and the trial Judge should independently assess the evidence presented during the trial.

In conclusion, the Criminal Original Petition seeking cancellation of bail was dismissed, with the Court emphasizing that the trial Judge should base their decision on the evidence and materials presented during the trial, rather than on the bail order.

 

 

 

 

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