The High Court of Madras set aside statutory bail order imposing 5 Lakhs against the person alleged for availing fake Input Tax Credit (ITC).
The petitioners have been arrested for the offense under Section 132(1)(b) and (c) and 132(5) of the CGST Act 2017 and since the final report was not filed by the respondent they have been granted bail. Despite the bail order being passed, the petitioners are unable to come out since they are unable to comply with the condition of payment of cash.
Though before the Principal Sessions Judge, they have offered to deposit cash of Rs.5 lakh, it is the contention of the petitioners that due to COVID-19 pandemic, the family members are unable to raise funds and deposit the amount, further in lieu of nonpayment of cash, a submission has been made by the counsel for the petitioners that two sureties will be able to deposit documents of immovable properties each worth Rs.20lakhs for each of the petitioners within a time frame fixed by this Court.
The single-judge bench of A. D. Jagdish Chandira set aside statutory bail order imposing 5 Lakhs against the person alleged for availing fake Input Tax Credit (ITC).
“The petitioners are ordered to be released on bail on executing their own bond for a sum of Rs.50,000/- each, before the Superintendent of the concerned prison, in which the petitioner has been confined and thereafter on their release,” the court said.
“Each of the petitioners shall furnish two sureties who shall deposit title deeds of immovable properties each to the value of Rs.20 lakhs before the Additional Chief Metropolitan Magistrate (EO-I), Egmore, Chennai within four weeks from the lifting of the lockdown or the commencement of the Court’s normal functioning, failing which the bail granted by this Court shall stand dismissed automatically,” the court directed.
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