Case Law Details
Munavver Ismail Memon Vs State of Gujarat (Gujarat High Court)
In the facts of the present case, based on the unaccounted transactions, the evasion of tax has been unearthed by the department. The department has already filed the complaint before the Court concerned. The department objected the bail application mainly on the ground that investigation is still under way. This Court is of considered view that, merely raising the contention that investigation is still going on is not enough, but, department should have point out that the further custody of the applicant is necessary. It is on record that, no liability is fixed or determined as per the statutory provisions of the Act. It is the right of the assessee to file an appeal against the assessment subject to deposit of the 10% disputed liability which may not exceed Rs.2 crore. In the facts of the present case, Rs.39,88,318/-, has been recovered during the course of investigation from the applicant. In such circumstances, when trial of the case would not likely to conclude in a reasonable time and the applicant is in custody since 24.03.2022 and considering the bonafide shown by the applicant to deposit the amount, I am inclined to release the applicant on bail subject to deposit of Rs.60 lakhs, before the Office of Chief Commissioner of State Tax, Ashram Road, Ahmedabad within a period of six months in six equal installments from the date of his release. It is to be noted that, Rs.39,88,318/- has already been recovered from the applicant. The department is directed to accept the amount. The applicant shall file an undertaking to the this effect before the Court concerned and this Court within a period of 15 days from the date of his release. If the applicant fails to comply with the condition, the bail granted to the applicant shall stands cancelled automatically.
FULL TEXT OF THE JUDGMENT/ORDER OF GUJARAT HIGH COURT
1. The applicant, by way of this application filed under Section 439 of the Code of Criminal Procedure, seeks regular bail in connection with the File No. CHIEF CST/ENF–CO/EOW/ STO-1/2021-22 registered with office of the Chief Commissioner of State Tax, Enforcement Co-Ordination, Gujarat State, Ahmedabad and State Tax Officer-1, (EOW), office of the Chief Commissioner of State Tax, Enforcement Co-Ordination, Gujarat State, Ahmedabad for the offences punishable under Sections 132(1)(a) and 132(1)(i) of Central Goods and Services Tax Act (hereinafter referred to as ‘CGST Act’) and Gujarat Goods and Services Tax Act, 2017 (hereinafter referred to as ‘GST Act’).
2. The applicant was arrested on 24.03.2022 and produced on the same day before the Court of learned Metropolitan Magistrate and since then, he is in judicial custody. His bail applications filed before the Court of Magistrate & City Sessions Court, came to be rejected vide orders dated 20.06.2022 and 20.07.2022 respectively. The complaint as contemplated under the provisions of the Act is filed on 20.05.2022 by the Authority concerned. Feeling aggrieved by the refusal to grant bail by the Court concerned, the applicant has preferred present application to grant him regular bail.
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