Gauhati HC Grants Bail to Commissioner (Appeals) in Corruption Case for Allegedly Demanding Bribe for Passing Favorable Order [Read Order]

The Gauhati High Court has granted bail to a Commissioner of Service Tax (Appeals) who is involved in a case registered by the Central Bureau of Investigation (CBI) for allegedly demanding bribe for passing a favourable order to the assessee.

A complaint was filed by Shri Chittaranjan Nath, who preferred an appeal before the Commissioner (Appeals) CGST, Central Excise Customs, Guwahati against an adjudication order demanding service tax. Then in the month of August, 2022 the Commissioner/accused- Shri Raju Shakthivel demanded a sum of Rs. 4,50,000/ i.e.@ 10% of the demand of Service Tax, through conduits for a favorable order in the said appeal. The CBI arrested the accused and started investigation.

The accused approached the Court requesting bail contending that the accused was arrested on 29.09.2022, and since then he has been languishing in jail hazoot. Mr. S. Rajganesh further submits that Nothing has been recovered from the possession from the possession of the accused and that before arrest, the accused has never been served any Notice under section 41A Cr.P.C. and on account of failing to comply with this provision, the accused is entitled to be released on bail.

Opposing the application, CBI has submitted that one Mahabir Jain Shyamsukha was caught red-handed while accepting illegal gratification of Rs. 3,83,000/ on behalf of accused Raju Sakthivel. It is also stated that investigation is still going on and one of the accused is absconding.

Justice Robin Phukan observed that the investigation is still going on and one co-accused is yet to be arrested.

“Though Mr. Haloi, learned Retainer Counsel, CBI has made an attempt to explain as to why the same could not be complied with yet such an explanation is found to be far from satisfactory. The I.O. has not complied with the provision of section 41 and 41-A Cr.P.C. before effecting arrest of the accused, and as such there is clear violation of the dictum of Hon’ble Supreme Court, issued in the case of Arnesh Kumar vs. State of Bihar,” the Court observed.

Granting bail to the accused, the Court held that “having regards to above, and also having regards to the nature of accusation and the punishment prescribed for the same, as well as the submission of learned Advocates of both sides, more specially the period of detention, and further keeping in mind the dictum of Hon’ble Supreme Court in Satender Kumar Antil (supra), I am of the considered opinion that further custodial detention of the accused seems to be unwarranted herein this case, and it is a fit case where the privilege of bail can be extended to the accused.”

To Read the full text of the Order CLICK HERE

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