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TMI Blog2021 (1) TMI 100X X X X Extracts X X X X X X X X Extracts X X X X ..... ction 132(ii) of the Act provides a punishment with imprisonment for a term which may extend to three years and with fine when the amount in question is greater than ₹ 2 crores but does not exceed ₹ 5 crores. Likewise, the punishment prescribed under Section 132 (1)(iii) for amount between one crore to two crores, the maximum imprisonment can be for a maximum period of one year. In cases where the amount is less than one crore of rupees, the same has been made compoundable. It may also be noted that the present proceedings are still at a teething stage and may, if the parties choose, be subject to the rigours of law as prescribed under the Statute i.e. assessment, appeal and revision etc. Till such time the guilt of the accused person would not have crystallized and it would difficult to pre-judge at the stage of hearing an application for bail what the ultimate punishment imposed would be. In such circumstances, keeping an accused in custody, might not ultimately achieve the ends of justice. Reliance may be placed in the case of M/S. JAYACHANDRAN ALLOYS (P) LTD. VERSUS THE SUPERINTENDENT OF GST AND CENTRAL EXCISE, THE DEPUTY COMMISSIONER OF GST AND CENTRAL EXCISE ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e. 3. The learned Counsel for the Petitioner has contended that the petitioner has always made genuine sale and purchase of goods using genuine GSTN and has paid Tax (GST) accordingly. He further submitted that the petitioner has been in custody since the month of 12.3.2020 and in the meantime charge sheet has been filed on 07.05.2020 U/s.132(1)(b)(c)(i) of OGST Act 2017. The fact that an earlier bail application has been rejected by the learned Addl. Sessions Judge cum Special Judge CBI, Court No.1, BBSR vide its order dated 25.03.2020 has been brought on record. The investigation has been kept pending for a long time and no purpose would be solved by keeping the petitioner in custody since he has been examined and all the relevant evidences required for adjudication are now on record. He further submitted that the petitioner is willing to co-operate with the prosecution as and when required. He also further undertakes to produce the Audit report for the relevant period i.e. financial year from 2017 to 2019. 4. The learned Counsel for the State on the other hand, has made detailed submissions and has painstakingly taken us through the records of the case to demonstrate the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... idence is largely based on documentary evidence. Once the charge-sheet has been filed unless antecedents to the contrary can be demonstrated, the presence of the accused may not be required to take the prosecution to its logical conclusion. 8. The object of the law in question is to act as a deterrent in blocking loopholes in an otherwise nascent law which concerns itself with the collection of revenue for the State. Section 132(1) (i)of the Act provides that in cases where the amount of tax evaded or the amount of input tax credit wrongly availed or utilised or the amount of refund wrongly taken, exceeds five hundred lakh rupees, with imprisonment for a term which may extend to five years and with fine. Similarly, Section 132(ii) of the Act provides a punishment with imprisonment for a term which may extend to three years and with fine when the amount in question is greater than ₹ 2 crores but does not exceed ₹ 5 crores. Likewise, the punishment prescribed under Section 132 (1)(iii) for amount between one crore to two crores, the maximum imprisonment can be for a maximum period of one year. In cases where the amount is less than one crore of rupees, the same has bee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... whatsoever that the offences set out under (a) to (l) of the provision refer to those items, that constitute matters of assessment and would form part of an order of assessment, to be passed after the process of adjudication is complete and taking into account the submissions of the Assessee and careful weighing of evidence found and explanations offered by the Assessee in regard to the same. 39. The use of words commits make it more than amply clear that the act of committal of the offence is to be fixed first before punishment is imposed. The allegation of the revenue in the present case is that the petitioner has contravened the provisions of Section 16(2) of the Act and availed of excess ITC in so far as there has been no movement of the goods in the present case as against the supplier and the Petitioner and the transactions are bogus and fictitious, created only on paper, solely to avail ITC. The manner of recovery of credit in cases of excess distribution of the same is set out in Section 21 of the Act. This section provides that where the Input Service Distributor distributes credit in contravention of the provisions contained in Section 20 resulting in excess distr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... offences punishable with death or life imprisonment. Hence there is no statutory support or justification for classifying offences into different categories such as economic offences and for refusing bail on the ground that the offence involved belongs to a particular category. When the Court has been granted discretion in the matter of granting bail and when there is no statute prescribing a special treatment in the case of a particular offence the Court cannot classify the cases and say that in particular classes bail may be granted but not in others. Not only in the case of economic offences but also in the case of other offences the Court will have to consider the larger interest of the public or the State. Hence only the considerations which should normally weigh with the Court in the case of other non-bailable offences should apply in the case of economic offences also. It cannot be said that bail should invariably be refused in cases involving serious economic offences. Similarly, the Supreme Court in the case of Sanjay Chandra vs CBI AIR 2012 SC 830 ., iterated the importance position of bail in criminal jurisprudence: Para 26. The trial may take considerable ti ..... X X X X Extracts X X X X X X X X Extracts X X X X
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