Bail Cancelled in GST Case: SC Upholds HC Decision, Grants Temporary Protection

Bharat Bhushan Vs Director General of GST Intelligence (Supreme Court of India)

In the case of Bharat Bhushan Vs Director General of GST Intelligence, the Supreme Court of India reviewed an order where the High Court had canceled anticipatory bail initially granted by the trial court. The cancellation was based on a precedent set by the Supreme Court in a prior case (State of Gujarat vs Choodamani Parmeshwaran Iyer), which held that anticipatory bail provisions under Section 438 of the Code of Criminal Procedure cannot be applied if a person is summoned under Section 69 of the Central Goods and Services Tax Act, 2017 for recording a statement.

The Supreme Court agreed with the High Court’s decision but allowed Bharat Bhushan to approach the High Court under Article 226 of the Constitution for relief. Additionally, the Supreme Court provided protection from arrest for six weeks to allow Bhushan time to file a writ petition. The Supreme Court disposed of the Special Leave Petition and any pending applications.

FULL TEXT OF THE SUPREME COURT JUDGMENT/ORDER

1 We have heard Mr Rajiv Malhotra, the learned counsel appearing for the petitioner.

2 It appears from the plain reading of the impugned order passed by the High Court that the anticipatory bail granted by the trial court came to be cancelled following the dictum as laid in the order passed by this Court in SLP (Crl) No 4212-4213 of 2019 (The State of Gujarat vs Choodamani Parmeshwaran Iyer) decided on 17 July 2023.

3 In the said Special Leave Petition, this Court took the view that if any person is summoned under Section 69 of the Central Goods and Service Tax Act 2017 for the purpose of recording of his statement, the provisions of Section 438 of the Code of Criminal Procedure cannot be invoked.

4 We are of the view that the High Court committed no error in cancelling the anticipatory bail granted by the trial court. However, in the facts and circumstances of the case, we grant liberty to the petitioner to invoke the writ jurisdiction of the concerned High Court under Article 226 of the Constitution. We are further persuaded to protect the petitioner for a period of six weeks from today.

5 If any writ petition is filed in the High Court, the same may be considered in accordance with law. However, for a period of six weeks from today, there shall not be any arrest of the petitioner.

6 The Special Leave Petition is accordingly disposed of.

7 Pending applications, if any, stand disposed of.