Case Law Details
Naval Kumar Vs CGST (Patiala House Court)
In this case , admittedly the total amount as liability of the of the applicants is yet to be adjudicated and assessed. Liability which has been raised by the department is the tentative where show cause notice is yet to be issued and adjudication is still due. Such proceeding will take considerable period of time. The firm involved in this case is stated to be a 50 years old firm and applicants are responsible for the running the firm being it’s employees at senior positions. Lability is yet to be ascertained, only a tentative availment of ITC of GST has been averred, even as on today it is not sure that the entire amount of ICT has been availed by the accused firm alone as involvement of other firms also been averred. Apart from this, there is nothing on record to show that applicant has been a habitual offender. It has also not been contended that there is any likelihood of their absconding from the country, investigation in this case still at the initial stage and the evidence which is required to be collected during the course of investigation is primarily documentary in nature. The presence of accused can be secured by imposing stringent condition upon the applicant, so that, they may not flee from the investigation and cooperate in the same as and when directed by the department. A sum of Rs Rs.4.5 crores already deposited out of total sum of Rs Rs.85.4 crores. Moreover, the purpose of investigation and fixing the liability of the petitioner is to secure the payment of GST, and also to deprecate the false claim of ITC and the object of statute can be secured by directing the applicant to deposit the amount in terms of the liability as held by Hon’ble Supreme Court in judgement of C.Pradeep (Supra).
In these circumstances, it is directed that in the event of arrest of the applicants namely Naval Kumar, Sanjeev Kothiala, Harmesh Mohan Sood and Sudhir Awasthi, they be released on bail on furnishing personal bond in the sum of Rs.2 lacs each (Rs. Two Lacs each) with surety of like amount to the satisfaction of IO/Commissioner, GST subject to the following conditions: –
1). The applicants shall deposit a total sum of Rs.10 crores, out of the total liability, within 10 days from today to the commissioner CGST/ competent Authority in terms of the directions in C. Pradeeep Petitioners(s) v. The Commissioner of GST and central Excise.
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