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2023 Supreme(P&H) 2471

IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH
ANOOP CHITKARA, J.
Arvinder Pal Singh – Petitioner
Versus
Superintendent (Prevention) of CGST Commissionerate – Respondent
CRM-M-15055 of 2022
Decided On : 27-03-2023

Advocates Appeared:
Mr. R.S. Rai, Senior Advocate with Mr. Anurag Arora, Advocate; For the Petitioner
Mr. Sourabh Goel, Senior Standing Counsel for CBIC with Ms. Samridhi Jain, Advocate for the Respondent-CGST.

Headnote:(A) CGST Act, 2017 - Sections 132(1)(b)(i) and 132(1)(i) - Punjab State Goods and Services Act, 2017 - Section 20 of IGST Act, 2017 - Anticipatory bail application by petitioner on allegations of fraudulently availing input tax credits under GST - Interim bail granted by a co-ordinate bench, continued subsequently. (Paras 1-2)

(B) Bail - Anticipatory - The necessity for custodial investigation and the irreversible injustice of pre-trial incarceration were key considerations in grant of bail. (Paras 3-4)

(C) Conditions - Compliance with previous bail conditions was affirmed, and the extension of interim protection was justified due to absence of any further allegations during the interim period. (Paras 5)

Facts of the case:
Petitioner apprehending arrest in a case involving input tax credit fraud under GST acts sought anticipatory bail, previously granted interim protection which required compliance with set conditions.

Findings of Court:
The court sustained interim bail, confirming absolute protection subject to strict adherence to prior conditions.

Issues: The court addressed whether custodial investigation was necessary and the implications of pre-trial incarceration.

Ratio Decidendi: Given the absence of intimidating actions or non-compliance with investigation requests, the need for ongoing bail was justified, prioritizing the rights of the accused.

Result: Petition allowed.

Table of Content
1. petitioner seeks anticipatory bail for fraud allegations. (Para 1)
2. interim bail extended; no new allegations found. (Para 2 , 5)
3. counsel's arguments for bail versus state opposition. (Para 3 , 4)

JUDGMENT

Mr. Anoop Chitkara, J.

Complaint No.

Dated

Sections

COMA 6113/2022

18.02.2022

132(1) (b) (i) of CGST Act, 2017; Punjab State Goods and Services Act 2017 and punishable under Sections 132(1) (i) of CGST Act 2017 and 132(1) (i) of Punjab State GST Act 2017 both read with Section 20 of the IGST Act, 2017

The petitioner apprehending arrest in the FIR captioned above, on the allegations of fraudulently availing input tax credits under GST, had come up before this Court under Section 439 CrPC seeking anticipatory bail.

2. Vide order dated 29-06-2022, the petitioner was granted interim protection by a co-ordinate bench, which is continuing till date.

3. Petitioner's counsel prays for bail by imposing any stringent conditions. The petitioner's counsel argued that the custodial investigation would serve no purpose whatsoever, and the pre-trial incarceration would cause an irreversible injustice to the petitioner and family.

4. The State's counsel opposes the bail.

REASONING:

5. Vide order dated 19-01-2023, this court had extended the interim bail subject to compliance of conditions mentioned therein. The petitioner's counsel stated that such order has been complied with. Thus, there would be no justification to keep this bail pending waiting for the proper investigation. The petitioner was granted interim protection, and during the interregnum, there is no allegation that he had intimidated the victim or victim's family or the witnesses or that he had hampered the investigation, or despite being called to join the investigation, he did not appear before the investigator. Given the above, there would be no justification to discontinue the interim protection, and the same is made absolute subject to the petitioner complying with the terms of all the interim bail orders.

Petition allowed in aforesaid terms. Interim order is made absolute subject to strict compliance of all terms and conditions. All pending applications, if any, stand disposed.

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