2022 (8) TMI 409 - HC - GST

Second Bail Application for grant of bail - evasion of GST - innocence of the applicant can be adjudged at pre-trial stage or not - HELD THAT - After perusing the averments made in the present bail application as well as rejection order of the court below, this Court is of the opinion, that no such good ground has been brought on record for grant of bail to the applicant. The application for grant of bail to the applicant is hereby rejected.

Summary

Issues: Bail application rejection based on alleged tax evasion under CGST Act, 2017

Analysis:
The judgment pertains to the rejection of a second bail application by the High Court in a case involving an applicant accused of tax evasion under the Central Goods and Services Tax (CGST) Act, 2017. The applicant claimed to be falsely implicated due to ulterior motives and denied committing the alleged offense. The Union of India vehemently opposed the bail plea, arguing that the applicant, involved in multiple businesses, had evaded GST and would likely repeat the offense if granted bail. The Court noted that the innocence of the applicant could not be determined at the pre-trial stage. The rejection order highlighted the lack of substantial grounds for granting bail. Consequently, the bail application of the applicant, involved in Case No. 06 of 2020, was rejected.

The Court directed the trial court to expedite the proceedings and conclude the trial within a year, barring legal impediments. It emphasized that the observations made in the order were solely for the bail application's disposal and should not influence the case's ultimate merits. The judgment underscores the seriousness of tax evasion allegations under the CGST Act, emphasizing the need for a thorough trial process while balancing the considerations of bail applications.