2021 (10) TMI 752 - HC - GST

Seeking grant of anticipatory bail - registration with GST department has been complied with or not - offence punishable u/s 132 of CGST Act, 2017 - HELD THAT - It is admitted fact that the applicant has given the undertaking to appear before the investigating authority on 08.10.2021 - as the respondent has submitted that as some other facts are also to be taken on the record and therefore, he has prayed for filing a status report. List on 25.10.2021.

Summary

Issues:
1. Anticipatory bail application under section 438 Cr.P.C. for offence punishable under section 132 of CGST Act, 2017.
2. Compliance with GST registration procedures and norms.
3. Non-appearance before investigating authority due to medical reasons.
4. Allegations of attempting to influence witnesses.
5. Contradictory statements regarding undertaking to appear before investigating authority.

Analysis:
1. The applicant, a director of a company engaged in manufacturing and supply of solar products, sought anticipatory bail for an offence under the CGST Act, 2017. The counsel argued compliance with GST registration procedures and the compoundable nature of GST offences, citing relevant judgments.

2. The applicant's non-appearance before the investigating authority was attributed to his mother's medical condition, supported by documentary evidence and difficulty in personal appearance. The counsel emphasized that custodial interrogation was unnecessary due to the documentary nature of evidence.

3. The respondent opposed the bail application, alleging the applicant's failure to honor assurances given to the Division Bench and attempting to influence witnesses. The respondent presented records indicating witness interference, leading to the rejection of anticipatory bail by the lower court.

4. The court noted the applicant's undertaking to appear before the investigating authority on a specified date, but the applicant's counsel claimed the undertaking was given without proper instruction. The court directed the filing of a status report within seven days for further consideration.

5. Considering the arguments and records, the court scheduled the next hearing for 25.10.2021 to address the conflicting statements and the request for a status report. The case involved issues of compliance, non-appearance, witness influence, and contradictory undertakings, necessitating a detailed examination before granting anticipatory bail.