P&H HC granted bail to CA being not a beneficiary of illegal availment of ITC

Case Details: Yogender Yadav v. Union of India - [2022] 140 taxmann.com 54 (Punjab & Haryana)

Judiciary and Counsel Details

• • Sureshwar Thakur, J.
  • Gopal Sharma, Adv. for the Petitioner.
  • Sourabh Goel, Sr. Standing Counsel, CBIC for the Respondent.

Facts of the Case

The petitioner was serving as a chartered accountant, with two proprietorship concerns. The prosecution alleged that petitioner-chartered accountant had facilitated preparation of fictitious invoices and statements of accounts to enable two assessees to avail ineligible input tax credit. The petitioner was arrested by the department and it filed bail application.

High Court Held

The Honorable High Court observed that no tangible evidence was available to determine whether the petitioner was beneficiary of illegal drawings of monetary sums received from Government treasury concerned. The investigation was still underway and role of petitioner was still to be determined. However, the petitioner was in judicial custody since he was arrested over 3 months ago. Therefore, his further judicial incarceration may not be prolonged, as it would unnecessarily curtail, and, fetter his personal liberty. Thus, the petitioner-bail applicant was ordered to be released from judicial custody.