Ravinder Nath Sharma Vs Union of India (Allahabad High Court)
Department cannot arrest without issuing a notice for recovery of GST
The Hon’ble Allahabad High Court in Ravinder Nath Sharma v. Union of India [Criminal Misc. Bail Application No. 26376 of 2023 dated July 10, 2023] granted the bail to the assessee on some conditions and held that the arrest was made without justifiable reasons and no GST recovery notice was issued.
Facts:
Ravinder Nath Sharma (“the Applicant”) has been arrested without assigning any reason and no notice for recovery of GST had been issued against him, making the arrest as illegal and till the date, no penalty or taxes has been ascertained as per the Central Goods and Services Tax Act, 2017 (“the CGST Act”). The Applicant was in jail since February 09, 2023.
The Revenue Department (“the Respondent”) submitted that the allegations imposed are very serious in nature and if the Applicant is released on bail, the Applicant will again indulge in similar activities and will misuse the liberty of bail.
The Applicant contended that the alleged offences were compoundable in nature.
The Applicant relied upon the Judgement in Satender Kumar Antil v. Central Bureau of Investigation & Another, (2021) 10 SCC 773 wherein the Hon’ble Supreme Court held that till date penalty or taxes has not been ascertained as per the CGST Act the offences are compoundable in nature and triable by Magistrate.
The Respondent contended that the grant of bail could potentially misuse the liberty granted by bail.
The Applicant contended that there is no previous criminal history so he shall not misuse the liberty of bail.
The Applicant filed bail application before the Hon’ble Meerut Session court which was rejected vide an order dated May 26, 2023 (“the Order”).
Aggrieved by the order, the Applicant filed bail application before the Hon’ble Allahabad High Court praying for granting the bail application.
Issue:
Whether the Revenue Department has right to arrest the Applicant without assigning any reason or without issuing of notice for Recovery of GST?
Held:
The Hon’ble Allahabad High Court in Criminal Misc. Bail Application No. 26376 of 2023 held as under:
