While granting bail to an accused of a GST Scam using 75 fake companies, the Allahabad High Court has granted bail considering the fact that he is in custody for 5 months and has no criminal history.
The applicant approached the High Court alleging that the entire investigation regarding allegedly illegal official transactions, WhatsApp chats, and hundreds of accounting entries was done. It was further contended that demand notice for ascertaining tax claimed has not been issued to date as per Section 74 C.G.S.T. Act. The offense alleged is punishable by up to 5 years. It was further contended that the applicant is in jail since 18.2.2022 and no custodial interrogation is required. The sanction for transaction accorded by the ADG, DGGI is based merely on his subjective satisfaction and not as per requirements of Section 69(1) of the C.G.S.T. Act.
Justice Siddharth observed that “the Commissioner is empowered to recover the due amount and propose for abating the proceedings and as the trial will take its own time to conclude, this Court finds this to be a fit case where discretion could be exercised in favor of the applicant.”
Relying on the Supreme Court decision in Sanjay Chandra vs. Central Bureau of Investigation, the Court held that the seriousness of the offences alone is not conclusive of the applicant’s entitlement to bail.
Granting bail on conditions, the Court held that “the applicant is in jail since 18.2.2022 and has no criminal history. Keeping in view the nature of the offence, an argument advanced on behalf of the parties, evidence on record regarding the complicity of the accused, the larger mandate of Article 21 of the Constitution of India, and the dictum of the Apex Court in the case of Dataram Singh Vs. State of U.P. and another reported in (2018)3 SCC 22 and recent judgment dated 11.7.2022 of the Apex Court in the case of Satendra Kumar Antil Vs. C.B.I., passed in S.L.P. (CRL.) No. 5191 of 2021, and without expressing any opinion on the merits of the case, the Court is of the view that the applicant has made out a case for bail.”
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