2024 (5) TMI 116 - HC - GST

Seeking enlargement on bail - evasion of GST - supply of clandestine goods without issuance of invoices - during investigation the statements of two employees were recorded in which the allegations against the applicant were found established - HELD THAT - On perusal of record, the evidence on record and without expressing any opinion on the merits of the case, the Court is of the view that the applicant has made out a case for bail. The bail application is allowed. Applicant is allowed to be released on bail on furnishing a personal bond and two heavy sureties each in the like amount to the satisfaction of the court concerned subject to the fulfilment of conditions imposed - bail application allowed.

Summary

Issues involved: Bail application u/s 132(1)(a) & 132(1)(i) of the CGST Act, 2017.

Summary:
The bail application was filed for the release of the applicant, who was accused of being involved in clandestine supply of goods without GST invoices and payment, amounting to Rs. 15.09 Crore. The applicant, a director of the company, was alleged to have evaded GST payment. Despite no recovery from the applicant's premises, he was arrested without prior notice. The defense argued that the offense was compoundable, investigation was complete, and there was no risk of witness tampering. The D.G.G.I. opposed bail, citing employee statements as evidence of the applicant's involvement.

The Court, after considering submissions from both sides and perusing the evidence, granted bail to the applicant, Sanjeev Agarwal, subject to conditions. These conditions included not tampering with evidence, not pressurizing witnesses, appearing in court as required, refraining from similar offenses, not influencing potential witnesses, surrendering the passport, and not leaving the country. Prosecution was given the right to seek bail cancellation if any conditions were breached.