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2025 Supreme(Online)(ALL) 700
HIGH COURT OF ALLAHABAD
Hon'ble Manoj Bajaj,J.
Sh Shah Mohammad Rana – Appellant
Versus
Union of India – Respondent
CRIMINAL MISC. BAIL APPLICATION No. - 3645 of 2025 at Allahabad
Petitioner:Abhinav Gaur , Seraj Ahmad and Sr. Advocate
Respondent: Dhananjay Awasthi and Parv Agarwal
The court granted bail to the applicant due to the lengthy trial process and the nature of the charges, emphasizing that the trial has not yet commenced.
Headnote:(A) Central Goods and Services Tax Act, 2017 - Sections 132(1)(a) and 132(1)(i) - Application for regular bail - Applicant in custody since 05.12.2024 for alleged GST evasion of Rs. 26.41 Crores by supplying goods without invoices - Search conducted at premises of associates revealed incriminating evidence - Statements recorded indicated involvement in preparing fake invoices - Trial not commenced, charges not framed, and co-accused released on bail - Bail granted considering the nature of offences and time likely for trial. (Paras 1, 9, 10, 11)
(B) Bail - Considerations for granting bail - The court considers the nature of the offence, the stage of the trial, and the possibility of the accused influencing witnesses. (Paras 10, 11)
Facts of the case:
The applicant is accused of facilitating GST evasion through a network of firms, with evidence gathered from searches and statements of associates indicating the preparation of fake invoices.
Findings of Court:
The court found that the trial is yet to commence, and the applicant's co-accused has been granted bail, warranting similar relief for the applicant.
Issues: The main issues were the applicant's involvement in the alleged GST evasion and the appropriateness of granting bail given the circumstances.
Ratio Decidendi: The court ruled that the applicant deserves bail due to the lengthy trial process ahead and the nature of the charges, which are triable by Magistrate and carry a maximum punishment of five years.
Result: Bail application allowed.
Hon'ble Manoj Bajaj,J.
1. Applicant-Shah Mohammad Rana has filed this application under Section 439 Code of Criminal Procedure for grant of regular bail, during the pendency of trial in C.C. No. 3408/2024-25; titled Directorate General of Goods & Services Tax Intelligence, Zonal Unit, Meerut vs. Shri Shah Mohammad Rana and another, under Sections 132(1)(a) and 132(1)(i) Central Goods and Services Tax Act, 2017 (hereinafter referred to as "CGST Act, 2017), DGGI/MEZU, Meerut. The applicant is in custody since his arrest on 05.12.2024.
2. The above complaint has been filed by Directorate General of Goods & Services Tax Intelligence, Zonal Unit, Meerut (hereinafter referred to as "DGGI Meerut") through Mr. Gaurav Kumar, Senior Intelligence Officer, DGGI, Meerut Zonal Unit, wherein it is alleged that an intelligence information was gathered from the reliable sources that M/s Rana Steels India Private Limited (GSTIN: 09AABCK3122F1ZY) registered with GST department since 1st July, 2017 is engaged in evasion of GST by supplying goods without invoices and e-way bills. This activity is being facilitated by group of persons called ("passers"), who ensured clearance of goods from factory gate to the premises of the recipients. On the basis of this information, searches were conducted at the residences of (i) Mr. Ashutosh (Ashu), House No. 580/43, Ganesh Ji Dham Ke Pichhe, Bhartiya Colony, Muzaffarnagar, Uttar Pradesh; and (ii) Shri Vikalp Jain, New Mandi, Near Ram Leela Ground, Muzaffarnagar, Uttar Pradesh. During search, incriminating records in the form of digital devices were seized from the house of Mr. Ashutosh (Ashu) and a Panchnama dated 1st February, 2024 was prepared, whereas no incriminating material was found at the residence of Shri Vikalp Jain. The recovery from Ashutosh (Ashu) included two Laptops, one smart Mobile phone as well as a pen drive, and later, his statement was recorded under Section 70 CGST Act, 2017. From the seized Laptop, billing software namely "BILL" was accessed and the data regarding fake invoices prepared by Mr. Ashutosh to camouflage the clearances by M/s Rana Steels India Pvt. Ltd. and others was retrieved. The electronic devices recovered were sent for forensic analysis by M/s Cyint Technology, Delhi on 1st and 2nd February, 2024, and the statements of Mr. Ashutosh (Ashu) were recorded on 1st, 2nd, 3rd February and 12th April, 2024. As per statements of Mr. Ashutosh (Ashu), he prepared fake bills for supplies made by various firms including M/s Rana Steels India Private Limited through billing software "BILL", and he worked from home and received details for preparing bills through WhatsApp. The details provided on WhatsApp to him contained the information relating to the vehicle nos., items, quantity as well as names of recipients, supplier and locations of recipients. A Mobile No. "8218221093" saved in his mobile in the name of 'Nurjaha' belonged to Shri Mohammad Tabish @ Raju, who used to send details through WhatsApp messages for preparation of fake bills for various firms including M/s Rana Steels India Pvt. Ltd. Another statement of Shri Koshal Krishan, who developed the software "BILL" was recorded, and according to him, Mr. Ashutosh (Ashu) used to contact him, if, any update is required in the software "BILL". The statement of Mohammad Tabish @ Raju recorded on 20th May, 2024 discloses that he had been using mobile Mobile No. "8218221093" upto January, 2024 and had been working for various firms including M/s Rana Steels India Pvt. Ltd. He used to send the details to Mr. Ashutosh for preparing fake bills to camouflage clandestine supplies and Mr. Ashutosh used to provide said bills through WhatsApp for further forwarding to the respective firms. The WhatsApp details sent to Mr. Ashutosh in respect of M/s Rana Steels India Pvt. Ltd. were given by using code "rs". During further investigation, five recipients/traders/firms, who received goods from M/s Rana Steels India Private Limited, Muzaffarnag
