Case Law Details
Subhash Chouhan Vs Union of India (Chhattisgarh High Court)
The applicant is in jail since 27th October, 2021 i.e. for more than 9 months. Appellant contended that it is settled law that in criminal jurisdiction, presumption of innocence has to be presumed. It is further submitted that in the GST portal, there is no system of cross-checking in their software for the traders who are wrongfully availing Input Tax Credit. As the earlier supplier has not paid the GST in proper manner, therefore, there is failure of mechanism in the GST Department and permitted wrong GST in number to the traders. Appellant further submits that there is no need of custodial interrogation, therefore, the applicant may be released on bail.
HC held that considering the fact that the allegation against the present applicant is of wrongfully utilizing Input Tax Credit of Rs.6,95,32,472/- and supplied taxable goods without payment of taxes and without issuing invoices to the tune of Rs.27,70,559/-, totalling Rs.7,23,03,031/-, and that offence under the Act are bailable and non-cognizable except for the offence under Section 132(5) of the Act, further considering that the applicant can be punished with maximum sentence of 5 years with fine, he is in jail since 27.10.2021, further considering that Proprietor of the firm namely, Rohan Tanna and Abhishek Pandey have already been enlarged on bail by the co-ordinate Bench and also considering that the applicant in the bail application raised a ground that the offence is compoundable in nature and, therefore, this Court after considering all the aspects of the matter, particularly the period of detention and the amount involved finds appropriate that if the applicant deposits Rs.70 lakhs under protest or admission of the disputed amount, which would be adjusted in accordance with law, the applicant can be enlarged on bail with certain conditions.
FULL TEXT OF THE JUDGMENT/ORDER OF CHHATTISGARH HIGH COURT
1. The applicant has preferred this application for grant of bail as he is arrested in connection with Crime No.88/GST/21-22 registered in Police Station Central GST, Raipur, (Preventive) District Raipur for offence under Sections 132 (1)(a) & 132 (1)(c), 132 (1)(1)(i) of the Central Goods and Service Tax Act, 2017 (for short ‘the Act’).
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