Sanjay Shende vs Union Of India Central GST

This is the first bail application filed under Section 439 of the Code of Criminal Procedure, 1973 for grant of regular bail to the applicant who has been arrested in connection with Crime No. 5/GST/2023-24 registered at Police Station Registered with GST Intelligence, GST, Raipur (C.G.), for the offence punishable under Sections 132(1)(c) of the Central Goods & Services Tax Act, 2017.

Case of the prosecution, in brief, is that the applicant has been arrested on the basis of information received to the respondent authority that the applicant is running business named and styled as M/s Ciplo Trading Company which taken unauthorized “Input Tax Credit” from different suppliers without supply of goods. It is further alleged that the applicant is further involved in management and control of another three firms which are registered with GST and on considering the GSTR 2a (i.e. available ITC) it was found that the applicant has purchased goods from various firms who’s GST registration is suspended or cancelled. It was found that ITC to the tune of Rs. 10,14,70,023/- was availed which is unauthorized.

It has been submitted by Mr. B.P. Sharma, learned counsel for the applicant that the applicant has voluntarily deposited the remaining dues of GST for which the FIR has been lodged by the respondent. It is further submitted by the learned counsel for the applicant the the applicant has no criminal antecedent and the applicant is in jail since 11.08.2023 and the conclusion of the trial is likely to take quite long time. Therefore, he prays for grant of regular bail to the applicant.

On the other hand, Mr. Maneesh Sharma, learned counsel, appearing for the respondent also endorse the same.

I have heard learned counsel appearing for the parties and perused the case diary.

Taking into consideration the facts and circumstances of the case that the applicant has no criminal antecedent and the applicant has voluntarily deposited the remaining dues of GST for which the FIR has been lodged by the respondent and the applicant is in jail since 11.08.2023, this Court is of the view that the applicant is entitled to be released on bail in this case.

Let the Applicant-Sanjay Shende involved in Crime No. 5/GST/2023-24 registered at Police Station Registered with GST Intelligence, GST, Raipur (C.G.), for the offence punishable under Sections 132(1)(c) of the Central Goods & Services Tax Act, 2017, be released on bail on his furnishing personal bond with two sureties in the like sum to the satisfaction of the Court concerned with the following conditions:-

(i) The applicant shall file an undertaking to the effect that he shall not seek any adjournment on the dates fixed for evidence when the witnesses are present in court. In case of default of this condition, it shall be open for the trial court to treat it as abuse of liberty of bail and pass orders in accordance with law.

(ii) The applicant shall remain present before the trial court on each date fixed, either personally or through his counsel. In case of his absence, without sufficient cause, the trial court may proceed against him under Section 229-A of the Indian Penal Code.

(iii) In case, the applicant misuses the liberty of bail during trial and in order to secure his presence, proclamation under Section 82 Cr.P.C. is issued and the applicant fails to appear before the court on the date fixed in such proclamation, then, the trial court shall initiate proceedings against him, in accordance with law, under Section 174-A of the Indian Penal Code.

(iv) The applicant shall remain present, in person, before the trial court on the dates fixed for (i) opening of the case, (ii) framing of charge and (iii) recording of statement under Section 313 Cr.P.C. If in the opinion of the trial court absence of the applicant is deliberate or without sufficient cause, then it shall be open for the trial court to treat such default as abuse of liberty of bail and proceed against him in accordance with law.

However, this Court hope and trust that the trial Court shall make an earnest endeavour to conclude the trial expeditiously from the date of receipt of a certified copy of this order, if there is no legal impediment.

Office is directed to send a certified copy of this order to the trial Court concerned for necessary information and compliance forthwith.