The High Court of Himachal Pradesh in two petitions of the common question of law involved, granted bail to the accused allegedly involved in the 14.33 Cr. scam.
It has been alleged that the petitioners have been booked for offences under Section 132(1)(b)(i) of Central General Goods and Service Tax Act 2017 (CGST Act) and Section 20 (xv) of the Integrated Goods and Services Tax Act, 2017 (IGST Act ) by Directorate General of Goods and Service Tax Intelligence, Chandigarh Zonal Unit (DGGI) on the allegations that the petitioners in connivance with each other facilitated M/s Mahesh Trading Company, M/s Rajshree Trading Company, and M/s Balaji Trading Company and other Firms in issuing invoices only without actual supply of goods with the motive to earn benefits by fraudulent means and thereby have caused a loss of Rs.14.33 Cr. to the government revenue.
Mr. Loveneesh Kanwar, the Counsel for the petitioners contended that the petitioners are in custody since 21.07.2021. The investigation qua them is already complete and a complaint stands filed against them in the Court of Learned Additional Chief Judicial Magistrate, Kasauli. As per petitioners, the allegations leveled against them are not true and evidence has been created to implicate the petitioners at the instance of persons having inimical relations with them. It has further been submitted that the statements of the petitioners recorded under Section 70 of the CGST Act were procured from them under duress and are not voluntary. It has been contended on behalf of the petitioners that the case of the respondent is based upon documentary evidence which is already in their custody.
The single-judge bench of Justice Satyen Vaidya after considering the facts and circumstances of the case and also considering the quantum of alleged tax evasion and also held that “Petitioners are in custody since 21.7.2021. The investigation against the petitioners has already been completed and, therefore, the complaint stands filed against them on 19.9.202. Pre-trial prolonged incarceration cannot be allowed as a matter of rule. No presumption of guilt can be attached against the petitioners as the cardinal principle of criminal jurisprudence in our legal system is to presume the innocence of accused till proved otherwise”. While granting bail the honorable court further held that “The only apprehension of the respondent that in case of release of petitioners on bail the investigation underway in respect of the other persons may be hampered, can be taken care of by imposing appropriate and suitable conditions against the petitioners”.
Pratheek Garg VS Intelligence Officer, Directorate General of Good and Services Tax Intelligence, Chandigarh
CITATION: 2022 TAXSCAN (HC) 150
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