The Delhi High Court observed that non-appearance for investigation on one or two dates cannot be ground for cancellation of bail under Section 132 of the Central Goods and Service Tax Act, 2017 ( CGST Act ).
During the course of investigation, it was found that no business activity was being conducted from the registered premises of M/s Radiant Traders and no goods or plant or machinery was found at their premises. Further, search was also conducted at the previous business premises of M/s Radiant Traders situated at D-248, Gali No.10, Near Laxmi Nagar Metro Station, Laxmi Nagar, Delhi and it was found that M/s Radiant Traders was not existing.
The counsel for DGGI submitted that in the present case, Input Tax Credit has been shown to be received by M/s Radiant Traders on the basis of procurement of cigarettes which have been shown to be used as raw material to manufacture smoking mixture. M/s Radiant Traders has purchased raw material worth Rs.221 crores and sold the finished products ( smoking mixtures ) at Rs.69 crores. Therefore, the aforesaid method is neither economically viable nor technically feasible and has been done only to commit fraud upon the exchequer.
It was also submitted that Manish Goyal was granted bail on the condition that he shall join investigation and co-operate in the same. However, Manish Goyal was late on two occasions and did not appear on the next two occasions on being summoned after the grant of bail on 15th September, 2023.
The counsel appearing for Manish Goyal contended that non-appearance on one date cannot be a ground for cancellation of bail. The accused has appeared for investigation on every date except 27th February, 2023, which was on account of is ill-health.
A Single Bench of Amit Bansal observed that “I am in agreement with the submissions made on behalf of Manish Goyal that non-appearance for investigation on one or two dates cannot be ground for cancellation of bail. It is an admitted position that after grant of regular bail, Manish Goyal did appear before the authorities pursuant to summons received by him on various occasions. Therefore, the order dated 15th September, 2023, passed by the Sessions Court cancelling bail on account of non appearance on one or two dates is harsh and is accordingly set aside.”
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