Mahesh Kumar @ Mahesh Bansal Vs State of Haryana (Punjab and Haryana High Court)
Economic Offence Accused Entitled to Bail Because Liberty Under Article 21 Cannot Be Ignored; Bail Cannot Be Denied Solely Due to Seriousness of Economic Offence; Completion of Investigation and Filing of Challan Favoured Bail in GST Fraud Cases; Punjab & Haryana HC Grants Bail Because Documentary Evidence Reduced Need for Continued Custody; Bail Allowed in Tax Evasion FIRs Because Trial Delay Cannot Override Personal Liberty; Punjab & Haryana HC Applies Triple Test and Grants Bail in GST and IPC Offence Cases; Economic Offences Form Separate Class but Bail Remains Rule After Investigation: Punjab & Haryana HC
The petitions before the Punjab and Haryana High Court were filed under Section 439 Cr.P.C. seeking regular bail in multiple FIRs registered against the petitioners for offences under various provisions of the Indian Penal Code and the Central Goods and Services Tax Act.
The FIRs involved allegations relating to tax evasion, cheating, forgery, criminal breach of trust, conspiracy, and offences connected with GST and VAT transactions. The cases were registered at Police Stations in Sirsa, Haryana. The petitioners argued that the matters primarily related to alleged tax evasion under the Haryana VAT Act and that the statutory framework under the VAT law constituted a complete code in itself. It was contended that Sections 37 and 38 of the VAT Act excluded the jurisdiction of police authorities and the application of IPC provisions in such matters. Reliance was placed on the Supreme Court judgment in Union of India vs. Ashok Kumar Sharma & Ors.
