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TMI Blog2022 (7) TMI 1276X X X X Extracts X X X X X X X X Extracts X X X X ..... ch manner as may be prescribed. The compounding shall be allowed only after making payment of tax, interest and penalty involved in such offences, on payment of compounding amount as may be determined by the commissioner, the criminal proceeding already initiated in respect of the said offence shall stand abated - the Commissioner is empowered to recover the due amount and propose for abating the proceedings and as the trial will take its own time to conclude, this Court finds this to be a fit case where discretion could be exercised in favour of the applicant. Keeping in view of evidence on record regarding complicity of the accused, larger mandate of the Article 21 of the Constitution of India and the dictum of Apex Court in the case of DATARAM SINGH VERSUS STATE OF UTTAR PRADESH AND ANR. [ 2018 (2) TMI 410 - SUPREME COURT] and without expressing any opinion on the merits of the case, the Court is of the view that the applicant has made out a case for bail. Let the applicant be released on bail on his furnishing a personal bond and two sureties each in the like amount to the satisfaction of the court concerned subject to conditions imposed - The bail application is allow ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Act which is non bailable and cognizable offence providing for five years maximum punishment. Learned counsel for the applicant has further submitted that entire case of the prosecution rests on the statement of the applicant recorded by the officials of DGGI .The bail was rejected by the court below without application of mind.Out of 21 firms from which supply was taken by the firm of the applicant, 18 firms was registered on date of transaction and their registrations were cancelled either suo moto or without reason retrospectively. . At the time business with the applicant s firm aforesaid companies were duly registered. In the Punchnama prepared by the Department no local witness is there. The grant of registration and cancellation is done by the department and not by the applicant and implication of the applicant only on ground that supplier firms of the applicant's firm have subsequently got re-registered cannot be a ground for implicating the applicant. Learned counsel for the applicant has finally submitted that investigation is going on in the matter and the liability is only to the extent of Rs. 3,30,59,527/- and not Rs. 8,76,45,100/ hence applicant is entitled ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gistrations have already been cancelled. The applicant's case is that at the time of business with the aforesaid firms they were duly registered and allegation that firms were fake is yet to be proved.It has not been explained how applicant will tamper with the evidence or influence the witnesses.Merely because of seriousness and magnitude economic affect the bail cannot be denied to the accused. Applicant is not stated to have any criminal antecedents. He is not shown to be habitual offender. The Calcutta High Court in WPA No. 23512 of 2019, M/s LGW Industries Ltd. Vs. Union of India decided on 13.12.2021, specifically held (i) ITC cannot be denied if the supplier s registration is cancelled after the date of transaction,(ii) in such circumstances no failure on the part of the purchaser is casted upon,(iii)there is no obligation on the part of the recipient to check the genuineness of the supplier in question,(iv) if any action is to be taken by the department the same is to be taken against the supplier and not against the recipient since the recipient paid the entire amount towards the cost of the goods on the supply of goods including due tax under CGST and SGST through ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of law and the fact that the Commissioner is empowered to recover the due amount and propose for abating the proceedings and as the trial will take its own time to conclude, this Court finds this to be a fit case where discretion could be exercised in favour of the applicant. The seriousness of the offences alone is not conclusive of the applicant's entitlement to bail, as held by the Supreme Court inter alia in Sanjay Chandra vs. Central Bureau of Investigation (2012) 1 SCC 40 in the following terms: 23. Apart from the question of prevention being the object of refusal of bail, one must not lose sight of the fact that any imprisonment before conviction has a substantial punitive content and it would be improper for any court to refuse bail as a mark of disapproval of former conduct whether the accused has been convicted for it or not or to refuse bail to an unconvicted person for the purpose of giving him a taste of imprisonment as a lesson. 24. In the instant case, we have already noticed that the pointing finger of accusation against the appellants is the seriousness of the charge . The offences alleged are economic offences which have resulted in loss ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ollowing conditions. Further, before issuing the release order, the sureties be verified. 1. The applicant will surrender his passport, if any, and not to leave the country without permission of the trial court concerned. In case, he has no passport he will file affidavit to this effect before this court. 2. The applicant will furnish bank guarantee of Rs. 50 lacs in favour of the opposite party which shall be forfeited in favour of opposite party in case of violation of any of conditions imposed in this order. 3. The applicant shall not tamper with the prosecution evidence by intimidating/ pressurizing the witnesses, during the investigation or trial. 4. The applicant shall not indulge in any criminal activity or commission of any crime after being released on bail. 5. That the applicant shall not, directly or indirectly, make any inducement, threat or promise to any person acquainted with the facts of the case so as to dissuade him from disclosing such facts to the Court or to any police officer; 6. The applicant shall file an undertaking to the effect that he shall not seek any adjournment on the dates fixed for evidence and when the witnesses are present in co ..... X X X X Extracts X X X X X X X X Extracts X X X X
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