2019 (3) TMI 655 - HC - GST

Grant of regular bail - issue bogus Bills under GST - setting up of firms in the name of economically backward persons - role of the employees of the co-accused - Section 439 of the Code of Criminal Procedure, 1973 - offence punishable under Sections 69(1) of the Gujarat Goods and Services Tax Act, 2017 and Central Goods and Services Tax Act, 2017 - Held that - In the facts and circumstances of the case and considering the nature of the allegations made against the applicant in the First Information Report, without discussing the evidence in detail, prima facie, this Court is of the opinion that this is a fit case to exercise the discretion and enlarge the applicant on regular bail. The applicant is ordered to be released on regular bail subject to conditions imposed - application allowed.

Summary

Issues:
Application for regular bail under Section 439 of the Code of Criminal Procedure, 1973 for offences under Sections 69(1) of the Gujarat Goods and Services Tax Act, 2017 and Central Goods and Services Tax Act, 2017.

Analysis:
The applicant, a young person pursuing studies in Chartered Accountancy, was employed under a co-accused and claimed to have acted under the co-accused's instructions without deriving any financial gain. The case involved the issuance of bogus bills amounting to crores of rupees without actual physical transfer of goods or transactions. The applicant's role was considered limited compared to the co-accused, and the maximum sentence that could be imposed was taken into account. The investigating officer failed to present any special circumstances against the applicant. The court referred to the law laid down by the Supreme Court in the case of Sanjay Chandra v. Central Bureau of Investigation.

The court, without discussing the evidence in detail, found it a fit case to exercise discretion and granted regular bail to the applicant. The applicant was ordered to be released on executing a personal bond with specific conditions, including not misusing liberty, surrendering passport, not leaving the state without permission, marking presence at the police station monthly, and informing about any change of residence. The authorities were directed to release the applicant only if not required in connection with any other offence. Breach of conditions would lead to appropriate action by the Sessions Judge. The trial court was instructed not to be influenced by the preliminary observations made by the High Court while granting bail. The bail bond was to be executed before the lower court with the flexibility to modify conditions as per the law. The application was allowed, and direct service was permitted.