The main legal point established in the judgment is the application of section 132(1)(i) of the Assam GST Act, 2017 to justify the arrest of the petitioner for deliberate tax evasion exceeding Rs. 5 crores.

ORDER :

1. The court proceedings have been conducted through video-conference due to COVID-19 pandemic.

2. This is an application, filed under section 439 of the Cr.PC seeking bail of the accused-petitioner, namely, Sri Subhash Kumar Singh, in connection with BI(E.O.) Assam Tax P.E. No. 03(03)/2021, registered under section 132(1)(i) of Assam GST Act, 2017.

3. Heard learned senior counsel, Dr A.K. Saraf for the petitioner, assisted by learned advocate Amit Goyal. Also heard Mr. M. Phukan, the learned Public Prosecutor, Assam for respondents 1 and 2.

4. I have also perused the investigation report and the record of the case, as produced.

5. Having filed the instant petition under section 439 of the Cr.PC, the petitioner, namely, Subhash Kumar Singh has prayed for enlarging him on bail in connection with the BI (E.O.) Assam Tax P.E. No. 03(03)/2021 registered under section 132(1)(i) of Assam GST Act, 2017. The petitioner was arrested on 12.7.2021 in connection with the aforesaid case and has been in detention since then.

6. The genesis of the abovementioned criminal prosecution may be traced to when the petitioner was served with a notice under section 50 of Cr.PC by the Superintendent of State Tax Assam, BIEO, Assam, Srimantapur, Guwahati-32 (‘the respondent No. 2’), in reference to B.I. (E.O.) Assam Tax P.E. No. 03(03)/2021 under the provision of section 132(1)(i) of the Assam GST Act, 2017 (‘the AGST Act’) alleging that sufficient materials have been found against the petitioner regarding his involvement in evasion of taxes and cess, amounting to more than Rs. 5,00,00,000 which is a cognizable offence under section 132(1)(i) AGST Act. It was further alleged that the petitioner is found to have deliberately supplied goods without issuing invoices in violation of the provisions of AGST Act with intention to evade Tax during the period of 2019 to 2021. Pursuant to issue of the said notice under section 50, Cr.PC the petitioner was arrested on 12.7.2021 and was forwarded to the learned Chief Judicial Magistrate, Kamrup Metro, Assam vide the Forwarding Report, dated 12.7.2021, citing reasons therein, inter alia, that, that the respondent No. 2 has ascertained that the petitioner has deliberately supplied goods without issue of invoices in violation of the provisions of the AGST Act with the intention to evade tax and cess.

7. It is imperative to note that, from the scrutiny and examination of documents, the authorities found that the total evasion detected inclusive of applicable tax, cess, penalty and interest is Rs. 22,77,13,211.04 which includes the evaded tax and cess amounting to Rs. 10,22,31,514.18 and accordingly the petitioner is found to have committed an offence punishable under section 132(1)(i) of the AGST Act.

8. During the course of hearing, Dr. Saraf, the learned senior counsel appearing for the petitioner, would submit that the petitioner on the day of his production on 12.7.2021 had moved a bail petition before the learned chief Judicial Magistrate, Kamrup Metro, Guwahati and the same was withdrawn on 16.7.2021. He also contended that the law laid down by the hon'ble Apex Court in the matter of Arnesh Kumar v. State of Bihar, (2014) 8 SCC 273 which is directed to be strictly followed during the current pandemic situation as per the direction of the hon'ble Apex Court in Contagion of COVID-19 virus in Prisons, In re., 2021 SCC OnLine SC 376 has not been followed by the arresting authorities as well as by the learned court below while remanding the petitioner to judicial custody. Dr. Saraf, would further contend that the accused should be released on bail in view of the ongoing Covid-19 pandemic.

9. Whereas, Mr. Phukan, learned Public Prosecutor, Assam, in order to buttress the arguments advanced by the learned counsel for the petitioner, invited the attention of the court to the order dated 7.5.2021 passed by the hon'ble Supreme Court in Suo Motu Writ Petition (C) No. 1/2020 (Contagion of COVID-19 virus in prisons). In the