2020 (12) TMI 938 - HC - GST

Grant of Bail - evasion of GST - Applicant is being summoned for the reason that there has been some business transactions between the two companies which are allegedly not disclosed by the said company and the same are being enquired into for the purposes of collection of GST - HELD THAT - This Court is of the opinion that since there have been summons and notices to the applicant for appearance in the inquiry relating to evasion of GST by the said company wherein, the applicant has been called upon, he is directed to appear before the competent authority whenever he is called upon by the concerned authorities. The applicant shall file his bail bond of ₹ 50,000/- and two sureties each in the like amount with an undertaking that he shall appear and co-operate in the assessment proceeding as and when required, to the satisfaction of the officer concerned, in which one of the sureties will be of his family members. In the event, the applicant does not respond to any of the summons/notices issued to him by the competent officer, this order shall stand vacated. Application disposed off.

Summary

Issues:
- Application under Section 438 Cr.P.C. for bail during investigation of GST evasion case.
- Applicant's apprehension of arrest based on summons and notices.
- Applicant's cooperation in the inquiry proceedings.
- Opposing party's argument for the necessity of the applicant's presence in the inquiry.
- Court's decision on bail conditions and appearance before the competent authority.

Analysis:
The judgment by the Hon'ble Samit Gopal, J., pertains to an application filed under Section 438 Cr.P.C. by the applicant seeking bail during the investigation of a case related to the evasion of GST. The applicant, being the proprietor of a company involved in business dealings with the entity under investigation, expressed apprehension of arrest based on summons and notices received from the office of the respondent. The applicant's counsel highlighted the applicant's cooperation in the inquiry proceedings and willingness to comply with any conditions regarding appearance and cooperation. It was emphasized that the applicant has no prior criminal record.

The opposing party, represented by counsel, argued against the application, stating the necessity of the applicant's presence for the assessment of GST against the company under scrutiny. The opposing party stressed that the inquiry proceedings were hindered due to the applicant's non-appearance. After hearing arguments from both sides and reviewing the documents, the Court acknowledged the summons and notices issued to the applicant and directed him to appear before the competent authority as required. The Court ordered the applicant to furnish a bail bond of ?50,000 along with two sureties, ensuring his appearance and cooperation in the assessment proceedings. One of the sureties was mandated to be a family member of the applicant.

The judgment concluded by stating that failure to respond to any future summons or notices would result in the vacation of the order. The application was disposed of with the specified directions, instructing the applicants to provide a copy of the order to the relevant law enforcement authorities within ten days for compliance. Additionally, the applicants were required to submit a self-attested computer-generated copy of the order from the official website of the High Court Allahabad, along with identity proof linked to a mobile number for verification by the concerned authorities.