2021 (2) TMI 191 - DSC - GST

Grant of Bail - fraudulent availment of ITC upon the strength of fake invoices providing fabricated information on E-way bill portal - HELD THAT - The sacrosanct right of life prevails upon any other contention of the complainant department resisting the grant of bail to the applicant/accused. Even otherwise also applicant/accused is reported to be in J/C since 10.12.2020. The investigation in the instant case primarily hovers around documentary evidence which is reported to be in possession of complainant department and the complainant department is not seeking any further custodial interrogation of the applicant/accused. Considering the peculiar health condition of the applicant/accused and the period of incarceration, the applicant/accused is ordered to be released on bail on his furnishing bail bond in sum of ₹ 5,00,000/- with two sureties in the like amount - the applicant/accused shall continue to cooperate in the investigation as and when called by the IO - the applicant/accused shall scrupulously appear at each and every stage of the proceedings before the concerned court so as not to cause any obstruction or delay to its progress.

Summary

Issues:
Bail application on grounds of false implication, documentary evidence possession, medical condition of accused, alleged fraudulent activities in business transactions, opposition by department, relevance of writ petitions, critical medical report, right to life vs. bail contention.

Analysis:
1. The bail application was filed by the applicant/accused claiming false implication and possession of documentary evidence by the investigating agency. The applicant highlighted the lack of efforts by the department to record his statement and the pending writ petitions seeking to quash the investigation.

2. The applicant's senior counsel argued that the business transactions of the companies were legitimate, conducted through proper banking channels, and involved GST-registered vendors. The counsel emphasized the rigorous checks at the port during exports, refuting the allegations of fictitious transactions.

3. The medical condition of the applicant was presented as critical due to past brain surgeries and ongoing health issues, leading to a plea for bail on medical grounds. The applicant expressed willingness to comply with any court-imposed conditions.

4. The department opposed the bail application, alleging creation of bogus export firms and fraudulent ITC claims amounting to ?45 crores. The department provided details of non-existent suppliers, fabricated information on E-way bills, and the active involvement of the applicant and his wife in the companies' tax affairs.

5. The department contended that the writ petitions did not affect the ongoing investigation, as no stay was granted by the High Court. The searches were conducted with proper approvals, and the department argued against the maintainability of the bail application.

6. A detailed medical report highlighted the critical health condition of the applicant, necessitating urgent specialized medical intervention outside the jail premises to prevent permanent disability or death.

7. The court emphasized the paramount right to life, especially considering the applicant's prolonged incarceration since December 2020. With the investigation revolving around documentary evidence already in possession, and no further custodial interrogation sought by the department, bail was granted.

8. Considering the applicant's health condition and period of custody, bail was ordered upon furnishing a bond and sureties, along with specific conditions to cooperate in the investigation, attend court proceedings, refrain from similar activities, surrender passport, and not leave the country without court permission.

9. The court disposed of the application with these observations, ensuring dasti copies to all concerned parties.

10. The order was directed to be immediately uploaded on the court website for public access.