The Gujarat High Court granted the bail to the alleged kingpin of GST Evasion to the tune of Rs. 6.60 Crores.
The applicant, Suprimkumar Jitendra Kumar Patel was taken into custody on December 4, 2020 at Unjha and then taken to GST Office at Rajyakar Bhawan, Ashram Road, Ahmedabad, and has been shown arrested by the State Tax Officer,, in connection with the alleged offence punishable under sections 132(1)(a) of the CGST Act and the CGST Act by exercising powers under section 69 of the CGST Act and the GST Act. It is alleged that the applicant had generated eway bills of 16 firms by concealing the identity of the real purchaser and real seller and has caused a huge revenue loss to the tune of Rs.9.60 crores by evading tax.
Advocate Mr.Pandya appearing for the applicant has submitted that the offense is triable by the Court of Magistrate under Section 138 of the CGST and the maximum imprisonment punishable is for five years. He has invited the attention of this Court to the complaint being Case filed before the Court of Additional Chief Metropolitan Magistrate on 04.02.2021. He has referred to the various contents of the complaint and has submitted that in fact, it reveals that the applicant is wrongly roped in all 16 firms, whereas prima facie it appears that the name of the applicant is only disclosed in 04 firms.
It is also submitted that the total amount of evasion of tax of such firms would come to around Rs.1,60,00,000 and the applicant is ready and willing to deposit some amount as determined by this court. It is submitted that now the investigation is over and hence, the applicant may be released on bail.
Vehemently opposing the present application, learned Public Prosecutor Mr.Mitesh Amin has submitted that in fact, this is a huge scam running into crores of rupees. He has submitted that there are 63 firms connected with the applicant which have forged 1511 bills running into Rs.1,44,00,000. He has submitted that there is no cooperation of the applicant in the investigation. Learned Public Prosecutor has also invited the attention of this court to the investigation papers and has submitted that though various questions were put to the applicant, no satisfactory answers are given. It is submitted that the FSL had also extracted the data from the mobile of the applicant, wherein the names of various fictitious firms have been revealed, however, the applicant has not given any satisfactory answer to the investigating authority with regard to his involvement with the aforesaid firms. Thus, he has submitted that looking at the role of the applicant and the loss of the tax revenue, he may not be released on bail.
The single judge bench of Justice A. S. Supehia allowed the bail on executing a personal bond of Rs.10,000 with one local surety of the like amount to the satisfaction of the learned Trial Court and subject to various conditions.
Firstly, the petitioner not take undue advantage of liberty or misuse liberty.
Secondly, the petitioner must not act in a manner injurious to the interest of the prosecution.
Thirdly, the petitioner must surrender his passport, if any, to the lower court within a week.
Fourthly, not leave the State of Gujarat without prior permission of the concerned Trial Court.
Fifthly, mark presence before the concerned Police Station on alternate every Monday for initial six months and thereafter, on alternate Monday of every English calendar month, for a period of six months, between 10:00 a.m. and 2:00 p.m.
Sixthly, furnish latest address of residence to the Investigating Officer and also to the Court at the time of execution of the bond and shall not change the residence without prior permission of the Trial Court;
Lasly, deposit an amount of Rs.10,00,000 within a period of 10 days before the trial Court from the date of receipt of writ of this order.
“On depositing the aforesaid amount, the applicant shall be released on bail. The applicant shall file an undertaking that the remaining amount of Rs.30,00,000 shall be deposited within a period of 12 (twelve) weeks. It goes without saying that if the applicant does not abide by the conditions imposed by this Court, the bail will stand automatically cancelled,” the court-ordered.
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