2021 (9) TMI 1005 - HC - GST

Grant of anticipatory bail - pendency of proceedings / inquiry before respondents - sole submission of learned counsel for the applicants before the court is that they may be allowed anticipatory bail during pendency of enquiry and to appear through Video Conferencing instead of physical appearance to avoid the apprehension of arrest and they may be allowed to submit their documents, as required by GST Department, online in terms of interim order - HELD THAT - The Court finds that inquiry under Section 70(1) of GST Act is pending against the applicants before the DGGSTI, Gaziabad Unit and apprehension of applicants is that they will be arrested any time even without consideration their documents which has been furnished or about to furnish pursuant to notices issued from the office of respondent No.5. Evasion of GST to the tune of ₹ 27 crore is subject matter of inquiry. Inquiry under section 70 of GST Act against the applicants is still pending and going on before the respondents and applicants are having a good business and social status in society. In view of discussion, this Court finds that the applicants have no prior criminal antecedents brought on record - Where the implication of a person is for a non-bailable offence, he can apply for anticipatory bail under Section 438 Cr.PC. If the applicants cooperate with the inquiry, there is no requirement of their arrest. The applicants are having their own address of residence and business and they are having a good status in society. They can give surety ensuring their appearance. They do not appear to be habitual offender, prosecuted or convicted earlier. Therefore, they deserve to be granted protection for the purpose of conclusion of inquiry by the Proper Officer of the GST Department. The applicants Hardeep Singh Banga, Gambhir Singh Banga, Satinder Singh Banga, Amitbir Singh, Harbir Singh Banga, Neeraj Bajaj and Pramod Kathuria shall be enlarged on anticipatory bail till the inquiry is concluded by the Proper Officer of GST Department under Section 70 (1) of the GST Act, on their execution of a personal bond of ₹ 5 crore and Indemnity bond to the tune of ₹ 25 crore on behalf of applicants before the Proper Officer - the applicants shall make themselves available for Online interrogation by the proper officer as and when required.

Summary

Issues:
Application for anticipatory bail under Section 70 of the GST Act pending before the DGGSTI, Ghaziabad Unit.

Analysis:
The applicants sought anticipatory bail concerning summons issued by the Senior Intelligence Officer GST Intelligence, Zonal Unit Ghaziabad, under Section 70 of the GST Act. The applicants expressed apprehension of arrest and detention during the inquiry, emphasizing their willingness to cooperate but fearing arrest. They cited Section 41(A) of the Cr.PC and the maximum punishment under Section 132(1)(b) of the GST Act as reasons for seeking anticipatory bail to avoid potential arrest. The applicants also highlighted their global business operations and readiness to furnish sureties. They claimed false implication due to business rivalry regarding alleged possession of bogus invoices.

The applicants' counsel argued that the applicants were cooperating with the inquiry initiated by DGGSTI, Ghaziabad, providing required documents and communicating through Video Conferencing. They emphasized compliance with interim orders and readiness to furnish an indemnity bond. The counsel referenced judgments from Karnataka, Punjab and Haryana, and Gujarat High Courts where anticipatory bail was granted in similar cases.

In contrast, the GST Department vehemently opposed the anticipatory bail plea, citing the substantial GST evasion amount involved and incriminating documents recovered during a search of the applicants' premises. The department highlighted non-compliance with summons and the ongoing inquiry's necessity for the applicants' cooperation. Legal precedents were cited to oppose the anticipatory bail plea.

The Court considered the pending inquiry under Section 70(1) of the GST Act against the applicants, acknowledging the evasion of GST amounting to ?27 crore subject to inquiry. The applicants' compliance with interim orders, deposition of funds, and lack of criminal antecedents were noted. Emphasizing personal liberty under Article 21, the Court granted anticipatory bail to the applicants based on their cooperation with the inquiry, societal status, and lack of prior criminal record. Specific conditions were imposed for the applicants' release on anticipatory bail, including personal and indemnity bonds, online interrogation availability, and non-influence directives.

The Court granted anticipatory bail to the applicants, emphasizing their cooperation with the ongoing inquiry and societal standing, while imposing conditions to ensure compliance and prevent undue influence. The Proper Officer was directed to continue the inquiry unaffected by the bail order.