TMI Blog2022 (8) TMI 52X X X X Extracts X X X X X X X X Extracts X X X X ..... history of any economic offence or otherwise against him. The Hon'ble Supreme Court in case of SANJAY CHANDRA VERSUS CBI [ 2011 (11) TMI 537 - SUPREME COURT ], has observed that in deciding the bail applications an important factor which should certainly be taken into consideration by the court is the delay in concluding the trial. Here, taking into consideration the course of investigation adopted by the Department, the evidence, so collected, the trial will take considerable time and it may happen, if denied bail, the judicial custody of applicant can be prolonged beyond the statutory period of punishment which is five years. Taking into consideration the provisions of law and the fact 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 favour of the applicant - The applicant is in jail since 18.2.2022 and has no criminal history. Keeping in view the nature of the offence, argument advanced on behalf of the parties, evidence on record regarding complicity of the accused, larger mandate of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Rs.3.14 crores on 17.02.2022. During further investigation, the applicant and co-accused, Jagvinder Singh, were found in one secret office at Shastri Nagar, New Delhi from where number of incriminating documents, like Adhar Cards, PAN Cards, forged rent agreements, forged electricity bills, etc., stamps of various firms, electronic devices and invoices of fake firms were recovered alongwith cash of Rs.35 lacs. Co-accused admitted managing and controlling number of firms by issuing fake invoices. The statement of Kunal Parcha, Accountant of Sri Jagvinder Singh was recorded, wherein he admitted issuing of fake bills on the direction of the accused. This fact was proved from the whatsapp of Kunal Parcha and the accused. The applicant admitted the allegations in his statement recorded under Section 70 of C.G.S.T. Act, 2017. It was found that they have issued fake invoices from 76 bogus firms to various business buyers without supplying of goods or services and have availed ineligible Input Tax Credit amounting to Rs.343 crores. Learned counsel for the applicant has submitted that even if all the allegations levelled in the complaint are admitted the alleged receipt of money by the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cant is required. The sanction for transaction accorded by the ADG, DGGI is based merely on his subjective satisfaction and not as per requirements of the Section 69(1) of the C.G.S.T. Act. The law of the Apex in the case of Arnesh Kumar Vs. State of Bihar, (2014) 8 SCC 273 has been violated. He has relied upon the judgement of the Apex Court in the case of Sanjay Chandra Vs. CBI, AIR 2012 SC 830, regarding the object and purpose of bail and number of judgements of different High Courts in this regard and has submitted that applicant may be released on bail. Learned counsel for opposite party has filed counter affidavit and has submitted that from the statements of the applicant and other co-accused persons, the allegations against the applicant in the complaint are fully proved. The applicant has admitted his active role in the alleged offence. Fraudulent availment and utilization of input tax credit of more than Rs. 5 crore has been done by the applicant and offence alleged is cognizable and non-bailable as per Section 132 (5) of CGST Act. In the search, at the premises of the applicant, fake invoices, ledger of buyer firms, PAN Card, E-way bill, etc., were recovered. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stent firms could not be located till the filing of the complaint and if located the evidence collected from those firms could be led before the trial court. The applicant is in jail since 18.2.2022 and there is no allegation that he had any prior criminal history of any economic offence or otherwise against him. The Hon'ble Supreme Court in case of Sanjay Chandra Vs. CBI, [2012 1 SCC 40], has referred the case of State of Kerala Vs. Raneef, [(2011) 1 SCC 784] , to observe that in deciding the bail applications an important factor which should certainly be taken into consideration by the court is the delay in concluding the trial. Here, taking into consideration the course of investigation adopted by the Department, the evidence, so collected, the trial will take considerable time and it may happen, if denied bail, the judicial custody of applicant can be prolonged beyond the statutory period of punishment which is five years. Section 132(1)(i) provides for punishment as that 'in cases where the amount of tax evaded or the amount of input tax credit wrongly availed or utilised or the amount of refund wrongly taken exceeds five hundred lakh rupees, with imprisonment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 7 relevant considerations while considering bail applications but that is not the only test or the factor; the other factor that also requires to be taken note of is the punishment that could be imposed after trial and conviction both under the Penal Code and the Prevention of Corruption Act. Otherwise, if the former is the only test, we would not be balancing the constitutional rights but rather recalibrating the scales of justice . 25. The provision of Cr.P.C. confer discretionary jurisdiction on criminal courts to grant bail to the accused pending trial or in appeal against convictions; since the jurisdiction is discretionary, it has to be exercised with great care and caution by balancing the valuable right of liberty of an individual and the interest of the society in general. In our view, the reasoning adopted by the learned District Judge, which is affirmed by the High Court, in our opinion, is a denial of the whole basis of our system of law and normal rule of bail system. It transcends respect for the requirement that a man shall be considered innocent until he is found guilty. If such power is recognised, then it may lead to chaotic situation and would jeopardize t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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