2019 (4) TMI 1566 - HC - GST

Bail Application - offence under Section 132(1)(b) of the CGST Act, 2017 - HELD THAT - This Court is of the opinion that this is a fit case to exercise the discretion and enlarge the applicant on regular bail. This Court has also considered the aspects that; (i) the applicant is in jail since 18.1.2019; (ii) the allegation against the applicant is that he has committed the offence punishable under Section 132(1)(b) of the CGST Act and he has wrongly availed input tax credit and also passed on to the concerned buyer; (iii) however, for the alleged transaction, it is always open for the respondent-department to take departmental action for recovery of penalty etc. against the applicant. The applicant is ordered to be released on regular bail in connection with the offence - Application allowed.

Summary

Issues: Regular bail application under Section 439 of the Code of Criminal Procedure, 1973 for an offence under Section 132(1)(b) of the CGST Act, 2017.

Analysis:
1. Nature of Offence and Bail Application: The applicant filed a bail application under Section 439 of the Code of Criminal Procedure, 1973, seeking regular bail for an offence under Section 132(1)(b) of the CGST Act, 2017. The applicant's counsel argued for bail based on the nature of the offence.

2. Arguments by the Parties: The applicant's advocate emphasized the nature of the offence and requested bail with suitable conditions. On the other hand, the State's Advocate Public Prosecutor opposed the grant of bail due to the gravity of the offence.

3. Court's Consideration and Decision: After hearing both parties and reviewing the material on record, the court decided to grant bail to the applicant. The court considered factors such as the applicant being in jail since January 2019, the nature of the allegations, and the role attributed to the accused. The court also noted that the department could take further action for recovery of penalties against the applicant.

4. Conditions for Bail: The court imposed several conditions for the applicant's bail, including executing a personal bond, surrendering passport, not leaving India without permission, marking presence at the police station monthly, and providing the current address to the Investigating Officer. The court emphasized that breaching these conditions could lead to appropriate action by the Sessions Judge.

5. Precedent and Legal Reference: The court referred to the case of Sanjay Chandra Vs. Central Bureau of Investigation, [2012] 1 SCC 40, while making the decision on the bail application.

6. Final Orders and Trial Instructions: The court allowed the bail application, ordering the applicant's release on bail upon fulfilling the specified conditions. It directed that the Trial Court should not be influenced by the prima facie observations made in the bail order.

7. Conclusion: The court granted the bail application, considering various factors and imposing specific conditions to ensure the applicant's compliance and cooperation during the investigation and trial proceedings.