2023 (7) TMI 575 - HC - GST

Seeking grant of pre-arrest bail to the accused/petitioner - common criminal conspiracy with mala fide intent to defraud and deprive both the Center and the State of its legitimate revenue - H ELD THAT - On perusal of Case Record as well as the Case Diary, it is revealed that sufficient incriminating materials have already been collected by the I.O. against the present accused/petitioner and the investigation is still in progress. But, it cannot be denied that the accused/petitioner appeared before the I.O. on 3-4 occasions and co-operated in the investigation of this case and he also produced the documents which was asked to produce before the I.O. under Section 91 Cr.P.C. The entire case is mainly based on documentary evidence. This is a fit case to extend the privilege of pre-arrest bail to the accused/ petitioner and accordingly, the interim pre-arrest bail granted to the present accused/petitioner subject to conditions imposed - this anticipatory bail application stands disposed of.

Summary

Issues involved: Application for pre-arrest bail under Section 438 of the Code of Criminal Procedure in connection with BI(EO) P.S. Case No. 07/2023, under Sections 120(B)/468/471/420 of the Indian Penal Code

Issue 1: Submission by Petitioner's Counsel

The petitioner, a businessman and dealer of coal, is accused of entering into a criminal conspiracy to defraud tax revenue. The petitioner cooperated with authorities by appearing multiple times, providing relevant documents, and recording statements. The petitioner seeks to convert the interim pre-arrest bail into absolute bail to continue cooperation and avoid hindering the investigation.

Issue 2: Objection by Additional Public Prosecutor

The prosecution alleges that the accused evaded taxes and defrauded the state by engaging in fake billing practices. Despite some document submission, the accused failed to provide all relevant documents and confessed to involvement in the fake billing process. The Taxation Department suspects the accused of claiming Input Tax Credit based on fake invoices. The prosecution argues that custodial interrogation may be necessary due to the seriousness of the economic offense and ongoing investigation.

Judgment

After reviewing the case record and diary, it was found that incriminating evidence exists against the accused. However, the accused cooperated by attending multiple sessions with the Investigating Officer and providing requested documents under Section 91 Cr.P.C. Since the case heavily relies on documentary evidence and considering the accused's cooperation, the court granted absolute pre-arrest bail to the accused. The bail comes with conditions, including regular interrogation availability and refraining from influencing witnesses. The anticipatory bail application was disposed of, and the Case Diary was ordered to be returned.