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TMI Blog2022 (7) TMI 298X X X X Extracts X X X X X X X X Extracts X X X X ..... proceeds to hear the present matter instead of recusing from the same. Arguments have been heard. Counsel for the department has taken a preliminary objection that the bail application in case of applicant no. 1 and 2 is premature inasmuch as they have never been summoned for participating in the investigation and that the investigation in the present case is at the threshold. Although, for applicant no. 3 and 4, the department has admitted that their names have cropped up during investigation. Ld. Counsel for the department has next stated that the wrong Input Tax Credit (ITC) claimed in the present case comes to about Rupees Fourty Crores and as such considering the enormity of the loss caused to the department, the applicant/accused is not be entitled to relief of anticipatory bail. Ld. Counsel for the department has stated that time and again, the superior courts have cautioned against grant of interim protection to persons accused of fiscal offences and submitted that this Court ought not to grant any relief to the accused persons in the present case. Counsel for the department has submitted that a search was carried out at the premises of the company in April, 2022, and, th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e. The counsel has next relied upon the decision in Tarun Jain Vs. DGGI, Bail Application No. 3771/2021 & CRL. M.A. 16552/2021 decided on 26.11.2021, which was also a case where fake ITC was alleged to have been claimed by the accused. As last resort, Ld. Counsel has relied upon the decisions of: (1) the Hon'ble Supreme Court in C. Pradeep Vs. Commissioner of GST and Central Excise, Selam & Anr.; (2) Judgment of the Hon'ble Delhi High Court in CGST, Delhi East Vs. Naval Kumar & Ors.; and (3) Pawan Goel and Anr. Vs. DGGI, Gurugram. To contend that time and again the higher Courts have taken a view that on deposit of 10% of the evaded amount, accused be admitted to bail. He has contended that in the present case, the company has already deposited a sum of Rs. 5 Crores in April, 2022, even though no demand has been raised by the department so far. It is also admitted position that no show-cause notice has been issued to the accused company or any of the accused indicating commencement of assessment proceedings. Counsel submits that the amount of Rs. 5 Crores is equal to 12.5 % of the alleged evasion, if any, and the present accused persons are better situated than the accuse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aking payment of tax, interest and penalty involved in such offences. The amount for compounding of offences under this section shall be such as may be prescribed, subject to the minimum amount not being less than ten thousand rupees or fifty per cent. of the tax involved, whichever is higher, and the maximum amount not being less than thirty thousand rupees or one hundred and fifty per cent. of the tax, whichever is higher. (3) On payment of such compounding amount as may be determined by the Commissioner, no further proceedings shall be initiated under this Act against the accused person in respect of the same offence and any criminal proceedings, if already initiated in respect of the said offence, shall stand abated." 34. Sections 69 & 70 of the CGST Act are reproduced hereunder: 69. Power to Arrest(1) Where the Commissioner has reasons to believe that a person has committed any offence specified in clause (a) or clause (b) or clause (c) or clause (d) of subsection (1) of section 132 which is punishable under clause (i) or (ii) of subsection (1), or subsection (2) of the said section, he may, by order, authorise any officer of central tax to arrest such person. (2) Wher ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as tax evasion, money laundering, etc. affect the economy of the country and thus are considered grave in nature. To deter persons from indulging in such economic offences, criminal sanctions are required to be imposed. One of the most prominent criminal sanctions imposed with regard to economic offences is that of arrest. It is widely acknowledged that arrests result in deprivation of liberty of a person. Thus, while it is imperative to maintain law and order in society, the power to arrest must also always be subject to necessary safeguards. Against this backdrop, analysing the arrest provisions under the Goods and Services Tax Law, with a view to study the adequacy of the safeguards and authorisation built into the text of the statute, the interplay between these provisions and the standards of arrest has to be established through judicial precedents, as well as other sources such as the Constitution of India and general statutes such as the Code of Criminal Procedure. It was further observed that : 44. In the present case, there cannot be any conflict with the fact that petitioner has been charged with economic offence. However, it is to be reiterated that the offence doe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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