2022 (10) TMI 870 - HC - GST

Seeking release of the applicant on bail - wrongful availment of input tax credit through fictitious documents and transactions - Section 132 (1) (l) (II) of GST Act - HELD THAT - The principal offence alleged against the applicant is of evasion of amounting to Rupees less than 500 lacs, which carries a maximum punishment of imprisonment for three years and which offence is bailable and also keeping in view the fact that the applicant has no criminal history, the applicant is entitled to be released on bail. Let the applicant Vishnu Pratap be released on bail in under Sections 420, 424, 467, 468, 120-B IPC and Sections 122 and 132 of the U.P. and Central Goods and Service Tax Act, 2017, Police Station Kwarsi, District Aligarh on furnishing a personal bond and two sureties each in the like amount to the satisfaction of the court below, subject to the conditions imposed - application allowed.

Summary

Issues: Bail application in Case Crime No. 374 of 2022 involving Sections 420, 424, 467, 468, 120-B IPC, and Sections 122 and 132 of the U.P. and Central Goods and Service Tax Act, 2017.

Analysis:
1. Nature of the Case: The case involves a bail application filed by the applicant seeking release in Case Crime No. 374 of 2022 under various sections of the Indian Penal Code (IPC) and the U.P. and Central Goods and Service Tax Act, 2017, related to alleged evasion of GST through wrongful claims of input tax credit.

2. Allegations and Charges: The FIR alleges that the applicant and co-accused individuals were involved in making wrong claims of input tax credit through fictitious documents, resulting in tax evasion amounting to Rs.4,43,88,684.65. The charges include offenses under Sections 420, 424, 467, 468, 120-B IPC, and Sections 122 and 132 of the CGST Act.

3. Bail Application: The applicant, through his counsel, contended that he is innocent, falsely implicated, has no criminal history, and has been in jail since a specific date. It was argued that the principal offense alleged falls under Section 132 of the CGST Act, which is non-cognizable and bailable, and the other charges are based on this principal offense.

4. Legal Submissions: The applicant's counsel relied on a previous judgment by the High Court where anticipatory bail was granted in a similar case of GST evasion exceeding Rs.100 crores. The prosecution did not dispute the legal aspects raised by the applicant's counsel.

5. Judicial Decision: After considering the facts, the court noted that the principal offense alleged against the applicant carries a maximum punishment of three years of imprisonment and is bailable. Given the absence of a criminal history for the applicant, the court granted bail. It was clarified that the decision does not reflect on the merits of the case.

6. Bail Conditions: The court ordered the release of the applicant on bail upon furnishing a personal bond and sureties, subject to conditions such as non-tampering with evidence, non-influencing of witnesses, and appearing before the trial court as required. Breach of these conditions could lead to bail cancellation upon prosecution's application.

This detailed analysis highlights the key legal aspects, arguments, and the court's reasoning leading to the grant of bail in the mentioned case before the Allahabad High Court.