Case Law Details
Sanjay Prahladbhai Patel Vs State of Gujarat (Gujarat High Court)
It is submitted that the applicant is arrested in connection with the alleged demand by the GST authorities without determining the extent liability of the said alleged demand. It is submitted that the arrest of the applicant in the alleged offence is effected only on the ipse dixit of the Tax Department and in colourable exercise of powers under section 69 of the Act. It is submitted that the very basis for arriving at a quantified sum of Rs.6.31 crores of the alleged tax evasion is obscure and no detail whatsoever has been provided in support thereof, which clearly shows that the same is a result of figment of imagination of the tax authorities. It is submitted that in absolutely unprecedented manner, the department has clubbed demands and liabilities in respect of 13 different entities, for making out a case of evasion against the applicant, which is absolutely foreign to tax law. It is also submitted that though the demands in respect of 13 different entities were clubbed to arrive at alleged amount of tax evasion of Rs.6.31 crores against the accused, nevertheless separate complaint is filed against the accused, wherein some of the accused are even shown as witnesses in the chargesheet.
Learned advocate for the applicant has submitted that the investigation in the case is over and the chargesheet in the form of complaint has already been filed. It is submitted that a complaint is filed on conclusion of the investigation. It is submitted that present case is based on documentary evidence which may at best attract a punishment maximum up to 5 years. It is submitted that the present offence is triable by the Magistrate and considering the burden of work and pending cases in trial court the applicant may be released on bail as the applicant is in jail since 14.12.2020. It is also submitted by the learned Advocate on instructions of the applicant, that the applicant is ready and willing to deposit a reasonable amount as suggested by this Court.
Learned Additional Public Prosecutor appearing on behalf of the respondent State has opposed grant of regular bail considering the nature and gravity of the offence. It is submitted that the present applicant is one of the kingpin and mastermind of the whole racket involving 13 fictitious firms leading to evasion of tax to the tune of Rs.6.31 cores.
Having perused the materials placed on record and taking into consideration the facts of the case, nature of allegations, gravity of offences, role attributed to the accused, without discussing the evidence in detail, at this stage, this Court is inclined to grant regular bail to the applicant.
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