2022 (3) TMI 349 - HC - GST

Seeking grant of regular bail - wrongly passing input tax credit to other firms/taxable persons and issuing invoices with the dishonest intention to evade payment of taxes - HELD THAT - The petitioner has been falsely implicated in the case subsequently on statement of co-accused. Alleged recovery of the photocopies of identity proofs was planted on him. The same also does not show his involvement in commission of the alleged offences. The petitioner is neither the proprietor nor partner of the firm. The petitioner is also not the beneficiary of the defrauded amounts. The petitioner was not aware about the fraudulent evasion of the taxes. The petitioner has not committed any offence and has no concern with the alleged offences. The petitioner was nominated as accused in two other cases of similar nature but the petitioner has been granted regular bail in both the cases by this Court vide order dated 26.08.2020 and 23.07.2020 passed by CRM-M-52922-2019 and CRMM- 53063-2019 respectively - The offences alleged to have been committed by the petitioner are triable by the Judicial Magistrate First Class. The petitioner is in custody for more than two years. The trial is likely to take long time and no useful purpose will be served by further detention of the petitioner in custody. Therefore, the petitioner may be granted regular bail. In view of the facts and circumstances of the case, nature of accusation and evidence against the petitioner, the period of his custody, the fact that all the offences are triable by the Judicial Magistrate First Class and also the fact that the trial is likely to take long time due to restrictions imposed to prevent spread of infection of Covid-19, but without commenting on the merits of the case, regular bail is granted to the petitioner - petition allowed.

Summary

Issues:
1. Application for taking photographs of petitioner's residential house and sale deed on record.
2. Application for pre-ponement of petition.
3. Petition for grant of regular bail in a criminal case involving sections 420, 467, 468, 471, 120-B, and 201 of IPC.

Analysis:

1. Application for Taking Photographs and Sale Deed on Record:
The court allowed the application for taking photographs of the petitioner's current residential house and a copy of the sale deed on record as Annexures P-6 and P-7, respectively.

2. Application for Pre-Ponement of Petition:
The application filed for pre-ponement of the petition was deemed infructuous and disposed of accordingly.

3. Petition for Grant of Regular Bail:
The petitioner filed a petition under Section 439 of the Cr.P.C. seeking regular bail in a case involving various sections of the IPC. The FIR alleged that the firm engaged in fraudulent activities by passing undue input tax credit, causing substantial revenue loss. The police investigation led to the arrest of the petitioner and co-accused, followed by a charge-sheet. The State Counsel opposed the bail, highlighting the petitioner's alleged involvement in creating a fake firm and issuing invoices for wrongful tax credit claims.

4. Court Proceedings and Decision:
After hearing arguments from both sides, the court considered the nature of the accusations, evidence, period of custody, and the likelihood of a prolonged trial due to pandemic restrictions. Without commenting on the case's merits, the court granted the petitioner regular bail, subject to the condition that he does not commit similar offenses in the future. The petitioner was ordered to furnish bail bonds to the satisfaction of the Trial Court/Chief Judicial Magistrate/Duty Magistrate concerned.

In conclusion, the court granted the petitioner regular bail based on the circumstances of the case, the nature of accusations, and the extended period of custody, emphasizing that the trial might be delayed due to pandemic-related restrictions.