TMI Blog2018 (7) TMI 589X X X X Extracts X X X X X X X X Extracts X X X X ..... The accused persons were arrested on 12.5.2018 and investigation has to be concluded within 60 days from the date of arrest as per provision of Section 167(2) of Cr.P.C. While granting bail, the Court has to keep in mind the nature of the accusations, the nature of evidence in support thereof the severity of the punishment which conviction will entail, the character of the accused, reasonable apprehension of the witnesses being tampered with, the larger interest of the public/ State and others similar consideration are requied to be taken into consideration. Bail granted subject to deposit of ₹ 39 crore to the Government Exchequer. - CRM 3327 of 2018, CRM 3328 of 2018 - - - Dated:- 9-7-2018 - Shivakant Prasad, J. For the Petitioner : Mr. Sekhar Basu Mr. Debasish Roy Mr. Rajdeep Majumder Mr. Danish Haque Mr. Arindam Dey Mr. Mayukh Mukherjee Mr. K.L. Mukherjee Mrs. Aroshi Rathore Mrs. Kriti Mehorotra For the Opposite Party : Mr. K.K. Maity ORDER Shivakant Prasad, J. The above two cases under provision of Section 439 Cr.P.C. have been filed by two separate petitioners under the same Memo of Arrest by the opposite party, Union of India whereunder p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ively to the recipient entities. Accordingly, it is submitted by Mr. Maity that in view of such fraudulent activities by the petitioners, the Additional Director General had reasons to believe that the petitioners have committed the offences stipulated under Section 132 sub-section (1)(a), (b) and (c) of the said Act for having evaded payment of tax in excess of rupees five hundred lakh which is an offence punishable with imprisonment for a term which may be extended to five years and with fine under Section 69 of the said Act. Based on such reasonable belief, the Additional Director General directed the officers concerned to arrest the petitioners in terms of the provisions stipulated under Section 69 of the said Act and they were arrested on 12.05.2018. It would be profitable to reproduce the provision of Section 69 of the CGST Act which deals with Power to Arrest as under : 69. Power to Arrest (1) Where the Commissioner has reasons to believe that a person has committed any offence specified in clause (a) or clause (b) or clause (c) or clause (d) of sub-section (1) of section 132 which is punishable under clause (i) or (ii) of sub-section (1), or sub-secti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ance of procedure established by law . Under Section 69 of the Act the functionary is the Commissioner as defined in Section 2(24) of the Act, Commissioner means the Commissioner of central tax and includes the Principal Commissioner of central tax appointed under section 3 and the Commissioner of integrated tax appointed under the Integrated Goods and Services Tax Act. My attention is invited to the said provision contending that there has been a delegation of the power of the Commissioner or Additional Director General Goods and Service Tax Intelligence and that delegatee has exercised the power of the delegator under Section 69 of the Act. Common law principles which are in vogue in our country accepts and in law enumerates the concept of right implies duty . Whoever steps into the shoes of the Commissioner to exercise his authority under the Act must remain alive to and be fully conscious of the duty entrusted on the Commissioner by section 69 of the Act. Duties are two-fold - to form reasonable belief and by order authorize any officer of central tax to arrest such person as contained in section 69(1) of the Act. Mr. Basu fortifies his argument contending that r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... observation, it is suffice to say such reasons to believe has to be formed by the Commissioner after the records of such inspection and search are communicated to him under sub-section 10 of section 67 of the Act or in any other manner the materials are placed before him for the formation of his reason to believe . When the Commissioner or the delegatee has reason to believe that the person concerned has committed an offence which necessitates arrest, an order has to be passed and such order logically, reasonably and prudentially must be informed by reasons or must contain the reasons which have emanated from reasons to believe entertained by the authority concerned. Adverting to the Memo of Arrest and the order endorsed thereon it is urged by Mr. Basu that in unmistakable terms the Additional Director General Goods and Service Tax Intelligence has merely exercised his authority and was completely oblivious of and irresponsible in the duty to be discharged by him. The document placed before the Court shows that the officers subordinate to the Additional Director General Goods and Service Tax Intelligence in their own way and as per their understanding, prepared official not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... roper authority under the Act, Mr. Maity invited my attention to Notification No. 14/2017 dated 01.07.2017, the Central Board of Excise and Customs appointed the officers in the Directorate General of Goods and Services Tax Intelligence as Central Tax officers and invested them with all the powers under the said Act and the Rules made thereunder. In terms of the said Notification, the post of Additional Director General, Goods and Services Tax Intelligence, is equivalent to the post of Commissioner. Accordingly, the said Additional Director General, Directorate General of Goods and Services Tax Intelligence, has been empowered under section 69 of the Act to exercise all the powers invested in the Commissioner of Central Tax. Therefore, he was well within his jurisdiction while directing the concerned officers to arrest the said persons. In response to the interpretation as to reasonable belive Mr. Maity submitted that the office note reveals that the said Additional Director General, based on the facts brought out from the investigation conducted by the DGGI, had reasons to believe that the petitioners have committed the offence specified under clauses (a), (b) and (c) of sub- s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hiana Zonal Unit of the DGGI and new evidences of irregular availment of input credit by various entities on the strength of fake invoices issued by the shell companies, controlled by the accused persons have been unearthed. The Department has started a pan India investigation with respect to fraudulent passing of GST input credit by issuing fake GST invoices. As a result of the investigation, the Department has unearthed evasion of GST involving huge government revenue in Delhi, Meerut, Jaipur and Mumbai and six persons involved in the fraud have been arrested and further investigation is required to reveal whom the petitioners have supplied all these fake invoices. It is also submitted that they are either labourer of jute mill or tea seller or unemployed aged between 20 to 30. In their statement, they stated that through agent of the accused Shri Sanjay Bhuwalka they met the accused and submitted copies of their personal documents like PAN Card, Voter Id Card etc. and signed many other documents. In exchange, the accused promised to pay them ₹ 4,000/- per month. Further, the Department has recorded statement of Bank Manager of Laxmivilas Bank on 11.05.2018, where he cat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erson in a case like the instant one is not to be measured in days but it has to be seen whether the grant of bail would hamper the investigation and if it is found to be so, then bail is not to be granted in such cases. It is settled position of law that grant of bail is a rule and rejection of bail is an exception. Maximum punishment provided in the Act is for a term of five years. The accused persons were arrested on 12.5.2018 and investigation has to be concluded within 60 days from the date of arrest as per provision of Section 167(2) of Cr.P.C. In view of submission of Mr. Maity investigation is still going on and will take a considerable period of time in conclusion of investigation to submit a final report against the accused petitioners to face the trial in open Court. 60 days period is going to lapse on 10.7.2018 so obviously he would be entitled to statutory bail. That apart, I have considered the submission of Mr. Basu in regard to Section 134 and 138 of the Act the object and reason of this Act is obviously to realise the revenue to the Government Exchequer and bearing in mind the provision of compounding nature of the offence under Section 138 of the Act. I am f ..... X X X X Extracts X X X X X X X X Extracts X X X X
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