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TMI Blog2020 (8) TMI 370X X X X Extracts X X X X X X X X Extracts X X X X ..... evaded the tax by clandestine sale of Pan Masala. The petitioner is neither a Partner of his tenant M/s Vishnu Essence nor is concerned with it in any other way. But he has been portrayed as the only responsible person for the alleged crimes committed by his tenant, while no documents have been produced by the department to prove the same. 3. In reply, learned Additional Solicitor General submitted that the petitioner is the Director of a Media Company, which publishes a daily newspaper in the name and style of "Dabang Dunia". Several vehicles incriminated in the clandestine removal/transportation of Pan Masala endorsed the Dabang Duniya press sticker and drivers of these vehicles were carrying Identity Cards of Dabang Dunia as provided to them by the transporter 'Ashoo RoadLines'. Dummy director of M/s Elora tobacco Co. Ltd Mr. Shayam Khemani also had Press ID card of Dabang Dunia. This shows that the petitioner was well involved in the alleged tax evasion. Apart from that, statements of the co-accused persons recorded under Section 70 of G.S.T. Act have also been referred by the learned ASG wherein the authors have disclosed that actually the petitioner is the sole Owner ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ner as requested by the department is necessary. It is further submitted that the officials of the department have harassed the co-accused persons and have recorded their statements to suit their whims under threat, coercion and duress. The petitioner have all reasonable apprehension that in case of his arrest, he will be treated in the same fashion and may be forced to signed the statements against his wish under the threat and undue pressure of the officials. 8. It is averred that the petitioner is not co-operating the investigation. He was called several times to co-operate, but he did not adhere to the summons issued by the department. Summons sent by speed post received back with a note that 'refused to accept'. Such non-cooperative attitude dis-entitles him for any sympathy of the Court. It is stated that by remaining out of the clutches of the law, he is creating hindrance in the investigation. To bolster this contention, the learned ASG pointed out that a group of persons assaulted the officials when they tried to search of the house of the petitioner following the due process of the law. A separate FIR is lodged against them. The case is registered and is under in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nr Vs. Union of India and Anr passed in WP (Cri) No.267/2019, Bimal Jain Vs. Union of India and Anr passed in WP (Cri) No.60/2020, Shashank Gupta and Anr Vs. Union of India and Anr passed in WP (Cri) No.298/2019, Gurbaksh Singh Sibbia Vs. State of Punjab, Siddharam Satlingappa Mhetre Vs. State of Maharashtra, Subhash Choudhary Vs. Deepak Jyala, Sri Hanumanthappa Pathrera Vs. State through Senior Intelligence Oficer, DGGIST, Bengaluru Zonal Unit, G. Bhaskar Rao VS. Dir. General of GST Intelligence, New Delhi, Mahendra Kumar Singhi and ors VS. Commissioner of Commercial Tax, Amit Bothra Vs State of MP, Birender Kumar Pandey Vs. Union of India, Vijay Sajnani Vs. Union of India and Ors and Nilesh Parikh Vs. Union of India. 14. The learned Additional Solicitor General has placed reliance on certain judgments of Hon'ble Supreme Court and High Courts passed in Special Leave Petition (Crl) 4322- 4324 of 2019 titled Union of India V. Sapna Jain & Ors., judgment dated 18.04.20219 in W.P. No.4764/2019 in the case of P.V. Ramanna Reddy & Ors. Vs. Union of India, in Cr.A. No.730 of 2013 decided on 9th May, 2013 in the case of Y. S. Jagan Mohan Reddy Vs. Central Bureau of Investigation, Uni ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , which were seized. Subsequent information received during search led to the search of premises of transporter M/s Ashu Roadlines, Indore. During this search 10 vehicles, unaccounted Pan Masala, its packing material and some raw material was seized. The Pan Masala was found to be of 'Vimal' brand manufactured by M/s Vishnu Essence, Sanwer Road, Indore. The truck drivers also confirmed clandestine transportation of Pan Masala. Information extracted from the mobile of an employee of Aashu Roadlines Mr. Sameer Khan, indicated that the firm M/s Vishnu Essence had procured large quantities of raw material and packing material from Ahmadabad clandestinely and had supplied the finished goods in the same manner to M/s AAA Enterprises, Indore. The petitioners Amit Bothara and Ashok Daga are partners of the firm M/s Vishnu Essence. They were called and interrogated. They confessed in their statements recorded under Section 70 of the GST Act that their firm had supplied Vimal brand Pan Masala worth Rs. 320 crores clandestinely and has evaded payment of the GST to the tune of Rs. 225 crores. Subsequent search of various places and statements of various persons further confirmed the aforesaid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... positing 10% of the amount assessed, they have deposited entire amount of Rs. 7 crores. 9. It is asserted that the petitioners have no connection with Pakistani national Sanjay Matta or alleged main accused Kishore Wadhwani. 10. It is further argued that the petitioners have been falsely implicated in the case. The officials have acted maliciously. The allegation made against them is vague. There is no incriminating evidence or supporting documents qua the petitioners. Details of alleged tax evasion have not been supplied to them. Their custody is illegal as there is no evidence to show that the officials were having "reasons to believe" that their custody was necessary. The department has not sought their police remand. This shows that there detention was unnecessary and illegal. The sole basis of their arrest is their statements recorded by the officials, but the same were recorded under threat and pressure and have been retracted immediately. Procedure prescribed under Ss. 67, 69, 74, 134,136, 138 of the GST Act and S.41A of Cr.P.C. for arrest, recording of statement, search and seizure has not been followed. The dispute is entirely covered under Section 132 of the G.S.T. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n recorded after the arrest of the petitioners. In all possibilities the magnitude of the offence would increase in many folds. Release of the petitioners would hamper the investigation, which is at very crucial stage, therefore, it is prayed that they be not granted bail. 14. It is submitted that during the course of investigating very clinching and cogent evidence has been unearthed which indicates that in connivance with each other, the petitioners as well as other wrongdoers have adopted a peculiar modus operandi for clandestine manufacturing and sale of pan masala. The petitioners are not merely benefactors of illegal activities, but had a very proximate nexus with the entire band of persons involved in the said syndicate. Investigation revealed that Mr. Vijay Kumar Nair of M/s. AAA Enterprises is the front man of Kishore Wadhwani. Kishore Wadhwani is the kingpin of the entire illegal procurement, production and supply chain of pan masala clandestinely. Investigation has further revealed that the petitioners had procured raw materials of pan masala and packing material from Ahmadabad and various other cities in Gujarat in clandestine manner and supplied manufactured pan mas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 70, 131, 133, 135, 136 of the GST Act have been referred by the learned counsel for the respondent/UOI. 20. I have heard the learned senior counsels at length and have perused the record supplied by the department. 21. On careful consideration of nature and gravity of the allegation made against the petitioners and the specific evidence collected in respect of these allegations, elaborate discussion of which would not be apt as it may adversely affect the interest of either party, the specific facts put-forth by the learned senior counsels for the petitioners and their reply and other facts and circumstances of the case, in the considered opinion of this court, the case for granting bail is made out. Therefore, without commenting on the merits of the case, both the petitions stand allowed. 22. It is directed that the petitioners Amit S/o Shri Shubhkaran Ji Bothara and Ashok Daga S/o Shri Ghawarchand Daga be released from custody on their furnishing a personal bond in the sum of Rs. 5,00,000/- (Rupees Five Lakhs Only) each with separate sureties to the satisfaction of the Trial Court for their appearance before it as and when required further subject to the following condit ..... X X X X Extracts X X X X X X X X Extracts X X X X
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