2025 (4) TMI 57 - HC - GST

Seeking grant of bail - offenses u/s 132(1)(b) 132(1)(c) and 132(1)(i) of the Central Goods and Services Tax Act 2017 - applicability of principles of parity with the co-accused - HELD THAT - Considering the facts and circumstances of the case without expressing any opinion on the merits of the case and considering the ground of parity of the applicant with the co-accused Vikrant Singhal and Sachin Singhal the bail application is allowed on the same terms as of the order of the co-accused passed in Vikrant Singhal and Another vs. Union of India 2025 (3) TMI 57 - ALLAHABAD HIGH COURT . Let the applicant Gourav Jain be released on regular bail in the above case crime subject to his furnishing the requisite bail bonds and surety to the satisfaction of the trial Court. It is further directed that the accused-applicant shall also abide by terms and conditions of the bail which shall be imposed by the trial Court at the time of acceptance of his bail bonds and surety. Bail application allowed.

Summary

1. ISSUES PRESENTED and CONSIDERED

The primary legal issues considered in this judgment include:

• Whether the applicant, Gourav Jain, should be granted bail under Section 483 of the Bharatiya Nagarik Suraksha Sanhita, 2023, during the pendency of the trial for alleged offenses under Sections 132(1)(b), 132(1)(c), and 132(1)(i) of the Central Goods and Services Tax Act, 2017.
• Whether the principle of parity with co-accused, who have been granted bail, applies to the applicant.
• Whether the alleged economic offenses committed by the applicant justify the denial of bail given the nature of the accusations and the evidence presented.

2. ISSUE-WISE DETAILED ANALYSIS

Issue: Bail Application under Section 483 Bharatiya Nagarik Suraksha Sanhita, 2023

Relevant Legal Framework and Precedents: The applicant filed for bail under Section 483 of the Bharatiya Nagarik Suraksha Sanhita, 2023. The offenses are under the Central Goods and Services Tax Act, 2017, which includes Sections 132(1)(b), 132(1)(c), and 132(1)(i), relating to fraudulent Input Tax Credit (ITC) claims.

Court's Interpretation and Reasoning: The Court considered the applicant's bail application in light of the principle of parity, as co-accused in a similar position were granted bail. The Court also weighed the nature of the accusations, the evidence presented, and the potential punishment.

Key Evidence and Findings: The prosecution alleged that the applicant, along with others, was involved in issuing fake invoices to fraudulently claim ITC. The applicant admitted to availing and passing on fraudulent ITC through multiple firms. The prosecution's evidence included statements under Section 70 of the GST Act and financial data analysis.

Application of Law to Facts: The Court applied the principle that bail is a rule and denial an exception, as reiterated in several Supreme Court judgments, including Sanjay Chandra Vs. CBI. The Court noted that the offenses are triable by a magistrate and carry a maximum sentence of five years. The trial had not yet commenced, and the applicant had been in custody for over five months.

Treatment of Competing Arguments: The prosecution argued that the applicant was a mastermind behind the fraudulent activities and opposed bail due to the economic nature of the offenses. The defense argued for bail based on parity with co-accused and the lack of direct evidence linking the applicant to the alleged offenses.

Conclusions: The Court concluded that further detention of the applicant would not serve any useful purpose, and granted bail based on parity with co-accused and the principle that bail is a rule.

3. SIGNIFICANT HOLDINGS

• The Court emphasized the principle that "grant of bail is a rule, and denial is an exception," as established in Sanjay Chandra Vs. CBI.
• The Court determined that the nature of the trial, the period of detention, and the lack of likelihood of trial conclusion in the near future justified granting bail.
• The Court held that the applicant should be released on regular bail, subject to furnishing requisite bail bonds and surety to the satisfaction of the trial court, and abiding by the terms and conditions imposed by the trial court.
• The decision was based on the principle of parity with co-accused who were granted bail under similar circumstances.

The Court's decision reflects a careful consideration of the legal principles surrounding bail, especially in cases involving economic offenses, while also ensuring fairness by applying the principle of parity. The judgment underscores the importance of balancing the need for justice with the rights of the accused to liberty pending trial.