Case Law Details
Badal Bhupatrai Shah Vs. State of Gujarat (Gujarat High Court)
The Hon’ble High Court of Gujarat allows anticipatory bail application, accepting the contention that: (i) directors of the company cannot be prosecuted in absence of a statutory provision; (ii) company has been wound up under section 433 and 434 of the companies act and hence, FIR is belated
The Sales Tax Department filed FIR with Valsad Police Station against directors of the company for failure to pay VAT dues. FIR was lodged under section 406,420 of Indian Penal Code read with section 85(1)(d), 85(1)(g) and Section 86(1) and (2) of the Gujarat Value Added Tax Act. The applicant filed anticipatory bail application which was rejected by the sessions court on the ground that: (i) it is an economic offence; (ii) sales tax dues of over Rs.180 crores are due to the State Government; (iii) applicant is not Co-operating with the investigation.
Hence, application before the Hon’ble High Court. The Hon’ble High Court of Gujarat allows anticipatory bail application, accepting the contention that: (i) directors of the company cannot be prosecuted in absence of a statutory provision; (ii) company has been wound up under section 433 and 434 of the companies act and hence, FIR is belated; (iii) FIR cannot be lodged for recovery of taxes; and (iv) the applicant has co-operated with the investigation and statement has been recorded.
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