GST Scam: Punjab & Haryana HC grants Bail to Chartered Accountant allegedly Borrowed UDIN from Colleague for Issuance of CA Certificate [Read Order]

In a recent ruling, the Punjab and Haryana High Court has granted bail to a Chartered Accountant allegedly borrowed UDIN from colleague for the issuance of CA Certificate in connection with the GST refund. The petitioner was in custody from May 2022.

The petitioner, Mr. Gaurav Dhir is a Chartered Accountant by qualification, who was initially registered but had subsequently given it up. The petitioner had been paid professional fee for uploading of the refund of Input Tax Credit. The petitioner and his co-accused Sunil Mahalawat were colleagues, as such the UDIN was borrowed by the petitioner from him for uploading and issuance of the CA certificate. He, however, further submits that otherwise as per Rule 89(m) of CGST Rules, CA certificate is not required for the aforesaid purpose. He further submits that pursuant to the notice by which, the petitioner was summoned, he appeared to join the investigation on 17.5.2022 but was arrested there and then. Thereafter, he was sent to the judicial remand but no request for police remand had been sought by the respondent-department. The recovery of laptop and other relevant documents have already been effected by the petitioner.

Justice Aman Chaudhary observed that “In the present case the investigation has been completed and the challan stands presented; he is not involved in any other case; he is in custody since 17.5.2022; nothing is to be recovered from him; there are a total of 21 PWs; it is a Magisterial trial, which is yet to commence; thus, further incarceration of the petitioner behind bars would not serve any useful purpose, the present petition for grant of regular bail deserves to be allowed.”

Granting bail with conditions, the Court held that “Keeping in view the the facts of present case and the judgments referred to above, particularly in the cases of Sanjay Chandra and P.Chidambaram (supra), the instant petition is allowed. The petitioner is ordered to be released on regular bail, subject to his furnishing bail/surety bonds amounting to Rs.10 lakhs to the satisfaction of trial Court/Duty Magistrate concerned and subject to him not being required in any other case.”

To Read the full text of the Order CLICK HERE

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