HC Grants Bail to Person Accused of ITC Fraud as Investigation was Over & Charge Sheet Was Also Filed

Case Details: Parag Nathalal Haria v. State of Gujarat - [2024] 159 taxmann.com 765 (Gujarat)

Judiciary and Counsel Details

• • M.R. Mengdey, J.
  • N.D. Nanavati, Sr. Adv. & Apurva N. Mehta for the Applicant.
  • Ms. Hetvi H. Sancheti & L.B. Dabhi, App for the Respondent.

Facts of the Case

In the present case, the assessee filed application for regular bail in a complaint registered for offences punishable under section 132. The assessee stated he was involved in legitimate business of trading in copper scrap brass scrap etc. and was not involved in any kind of illegitimate activities. It was further stated that he had done purchases and sales through valid tax invoices, delivery of goods had been taken off and all documents demonstrating genuineness of transaction including proof of delivery were already in possession of department.

High Court Held

The Honorable High Court observed that Section 132 of the GST Act describes punishment of imprisonment which may extend to 5 years and with fine for the offence alleged against the present assessee. However, in the present case, the assessee was in custody since 19.12.2023 and the investigation was already over and charge sheet was also filed by the department. Therefore, after considering nature of offence and role attributed to assessee, the Court held that assessee to be enlarged on bail subject to conditions including furnishing bail bond of Rs. 10,000.

List of Cases Referred to

• • Sanjay Chandra v. C.B.I. [2012] 1 SCC 40 (para 7).