Madhya Pradesh HC grants Bail to Pakistani National accused of GST Evasion [Read Order]

GST Evasion - Pakistani National - Madhya Pradesh High Court - Bail- Taxscan

The Madhya Pradesh High Court recently granted the bail to the Pakistani National who is the accused in the Goods and Service Tax (GST) evasion on furnishing a personal bond in the sum of Rs.5 Lakhs.

The applicant, Sanjay Matta who is a Pakistani national faces an allegation that he is indulged in clandestine clearance of mouth freshener, commonly known as ‘Pan Masala’, without payment of GST.

The officials of the department received intelligence input that one Pakistani national Sanjay Matta is indulged in the clandestine clearance of mouth freshener, commonly known as “Pan Masala”, without payment of GST. Acting on this information, several searches were conducted at various places and unaccounted goods worth Rs.2.59 crores were found in different godowns of Mr. Matta, which were seized.

The Counsel for the applicant prayed for bail being granted to the applicant on the grounds that the petitioners were earlier paying GST honestly and are also ready to pay the same in future.

The applicant further submitted that due to unprecedented circumstances of the spread of COVID-19 pandemic and complete lockdown pursuant thereto; there was some delay in paperwork and submission of the invoices etc.

It was further contended that though under pressure, they have already paid Rs. 7 crores and are still ready to pay the deficit, if any, found due on the final assessment.

The Single Judge Bench consisting of Virendra Singh, on the careful consideration of nature and gravity of the allegation made against the petitioners and the specific evidence collected in respect of the allegations, without commenting on the merits of the case released the applicant from the custody on furnishing a personal bond in the sum of Rs.5 Lakhs and certain conditions were also imposed.

Firstly, the petitioners shall cooperate with the trial and shall not seek unnecessary adjournments on frivolous grounds to protract the trial.

Secondly, the petitioners shall not directly or indirectly allure or make any inducement, threat or promise to the prosecution witnesses, so as to dissuade him from disclosing truth before the Court.

Thirdly, The petitioners shall not commit any offence or involve in any criminal activity;

Fourthly, in case of their involvement in any other criminal activity or breach of any other aforesaid conditions, the bail granted in this case may also be cancelled.

Lastly, the petitioners shall submit their passports, if any, before the Trial Court and shall not leave India without prior permission of this Court.

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