Directorate General of GST Intelligence Vs Sanjay Jaglan (Delhi High Court)
Where respondent-assessee was granted bail and no complaint had been filed against him even after 5 years have elapsed since the investigation began, the bail cannot be cancelled: Delhi High Court
The Hon’ble Delhi High Court in Directorate General of GST Intelligence v. Sanjay Jaglan held that cancellation of bail is not justified in absence of supervening circumstances, especially when no complaint is filed and the accused has deposited more than 10% of the disputed ITC liability & fulfilled all the pre-conditions for grant of bail.
Facts:
Directorate General of GST Intelligence (“the Petitioner”) filed a petition under Section 482 of the Code of Criminal Procedure, 1973 challenging the bail order dated December 17, 2019 passed by the Chief Metropolitan Magistrate, Patiala House Courts, New Delhi.
Sanjay Jaglan (“the Respondent”) was arrested on December 01, 2019 for allegedly availing fraudulent input tax credit (“ITC”) of ₹33.75 crores through his company M/s R.R. India Pvt. Ltd. by using fake invoices from non-existent firms claiming supply of manpower services. He was granted bail upon depositing ₹1 crore with the department and undertaking to deposit an additional ₹3 crores by December 24, 2019. The Respondent also submitted original property documents worth ₹40.76 crores to show bonafide intent.
