2022 (3) TMI 259 - HC - GST

Seeking grant of bail - petitioner has cheated the Department to the tune of ₹ 11.72 Crore by producing fake invoices - petitioner would submit that the petitioner is unable to secure any government surety and in the alternative, the petitioner is prepared to deposit a cash security of ₹ 10,00,000/- and also ready to execute a bond for a sum of ₹ 50,00,000/- and to deposit documents of property worth ₹ 50,00,000/- - HELD THAT - Taking into consideration that fact that the petitioner is in custody from 07.12.2021 and he is prepared to deposit a sum of ₹ 10,00,000/- in cash and execute a bond for a sum of ₹ 50,00,000/- by depositing documents for property worth ₹ 50,00,000/-, the condition imposed by this court by order dated 07.02.2022 is set aside. Petition allowed.

Summary

Issues:
- Modification of conditional order passed by the Additional Chief Metropolitan Magistrate
- Bail conditions related to depositing cash security and executing a bond
- Petitioner's inability to secure a government surety
- Allegations of cheating the Department
- Proposal for modifying the conditions by the petitioner
- Arguments by the Additional Public Prosecutor
- Decision on modifying the conditions
- New conditions imposed by the High Court

Analysis:

The petition was filed under Section 482 of the Cr.P.C. seeking modification of a conditional order passed by the Additional Chief Metropolitan Magistrate. The petitioner, arrested in connection with GST Act offenses, was remanded to judicial custody. The Trial Court had imposed bail conditions, including a cash security deposit and executing a bond with government sureties, which the petitioner found difficult due to being in custody for two months.

The petitioner, unable to secure a government employee as surety, requested modification of the conditions. The Additional Public Prosecutor opposed the modification, citing allegations of cheating the Department with fake invoices and ongoing investigations. The petitioner proposed an alternative, offering to deposit cash, execute a bond, and provide property documents and blood sureties instead of government sureties.

After hearing both parties, the High Court considered the petitioner's custody since December 2021 and the proposed modifications. Consequently, the Court set aside the previous condition and allowed the petition with revised conditions. The new conditions required a cash security deposit, execution of a bond with property documents, and blood and relative sureties. Additionally, the petitioner and sureties were directed to appear daily before the respondent and provide identity proof.

In conclusion, the High Court modified the bail conditions to accommodate the petitioner's circumstances while ensuring compliance and identity verification through the revised conditions.