Bail application of accused involved in tax evasion by supplying goods without issue of invoice rejected

Badha Ram Vs Intelligence Officer (Kerala High Court)

Kerala High Court held that bail application of petitioner involved in tax evasion of more than Rs. 6.5 crores on allegation of supply of goods without issuance of invoice rejected as such serious allegations needs thorough investigation.

Facts- This is an application filed u/s. 439 of the Code of Criminal Procedure seeking regular bail. Petitioner is the sole accused in crime file No. GST/INS-7/2023 registered based on the complaint of the 1^st respondent u/s. 132(1) of the Kerala State Goods and Service Act, 2017. It is alleged that the petitioner is supplying goods without issuing invoices, evading the tax payment due from 2018 onwards. The accused is involved in tax evasion estimated at 6.14 crores. A raid was conducted in the office of the accused on 09.11.2023, and he was arrested on 13.11.2023.

Conclusion- The power to arrest under Section 69 can be invoked if the Commissioner has a reason to believe that the person has committed offences that are prescribed and which are punishable under Section 132 of the CGST Act, 2017. Thus, the reference to Section 132 in Section 69 is only to indicate the nature of the offences based on which reasonable belief is found and recorded by the Commissioner to pass an order for arrest.

Held that there is an evasion of more than Rs.6.5 crores alleged against the petitioner. A serious allegation is made, which warrants a thorough investigation. Under such circumstances, when the investigation is going on, I am not inclined to grant bail to the petitioner at this stage. Accordingly, the bail application will stand dismissed.

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