The Petitioners are husband and wife and they are the Directors of M/s. Steel Hypermart India Private Limited and M/s.Singhi Buildtech Private Limited. It is further alleged that the said Companies have been involved in circular bill trading in the State of Tamil Nadu and Karnataka and on examination of the data available in Analytics Software of the respondent’s Department, it is noticed that the total upwards supplies/sales of M/s.Singhi Buildtech Private Limited for the financial year 2017-18 and 2018-19 is Rs.300,64,44,966/- and the above information reveals that Rs.195,78 Crores out of total inward supply/purchase of Rs.234.29 Crores in 2017-18 and 2018-19 is made only from registered taxable persons involved in circular trading.
It is further alleged that the total outward supply/purchase of M/s.Steel Hypermart India Private Limited for the financial year 2017-18 and 2018-19 is Rs.2,34,29,84,3870 and the said fact reveals that Rs.195.78 Crores out of the total supply of Rs.234.29 Crores during the year 2017-18 and 2018-19 is made only from the registered taxable persons involved in circular trading and thereby petitioners-accused have played fraud in circular bill trading.
While allowing the bail application, Justice B.A Patil observed that, “Though several contentions have been raised with reference to initiation of the action under the GST Act and CST Act, since the scope of these petitions is limited only to consider the bail applications, the other points which have been raised are not dealt with in detail to dispose of these petitions. This Court while considering the similar aspect in Criminal Petition No.497/2019 c/w. Criminal Petition No.498/2019, disposed of on 18.2.2019 has discussed elaborately all the points and thereafter it has come to the conclusion that the accused-petitioners therein are entitled to be released on bail”.
The Court also has given certain following conditions:-
- Each of the petitioners shall execute a personal bond for Rs.5,00,000/- (Rupees five lakhs only) with two sureties for the like sum to the satisfaction of the apprehending authority or authorised officer.
- They shall surrender before the Investigating Officer or authorised officer within fifteen days from today
- They shall not tamper with the prosecution evidence or destroy any documents whichever required for the purpose of interrogation or investigation.
- They shall co-operate with the investigation or interrogation.
- They shall be made available before the Investigating Agency as and when they are ordered to do so. If they do not co-operate with the investigation, the respondents are at liberty to move the Court for cancellation of bail.
- They shall not indulge in similar type of criminal activities covered under the said GST Act and Central Goods and Services Tax Act till the trial is concluded.
- They shall not leave the jurisdiction of the Court without prior permission.
- They shall not leave the country.
- They shall surrender their original passports before the jurisdictional Court.
- They shall mark their attendance before the authorised officer on 1st of every month till the trial is concluded.