Bail should not be canceled merely on assumptions; substantial evidence and misconduct must be present to justify cancellation.

JUDGMENT

NEENA BANSAL KRISHNA, J.

1. Petition under Section 482 of the Code of Criminal Procedure , 1973 (hereinafter referred to as „Cr.P.C.‟), has been filed on behalf of the Petitioner/CGST, West Delhi challenging the Order dated 17.03.2021 of the learned CMM and seeking cancellation of Bail granted to Vishal Goyal, the Respondent.

2. The brief facts of the case are that on 29.12.2020, an information was received about an unregistered unit of gutka factory running at CR place, Rohini, Sector 20, Delhi and that this unregistered Unit had more than 10 speed manufacturing machines, which were working 24x7 at the top floor of the premises and around 40-50 labourers were working. The finished goods were being supplied to Chhattisgarh and Odisha. The raid was conducted under Section 67(2) of the CGST Act , 2017 on 01.01.2021. During the search, the premises was found covered in dust, with a strong pungent smell emanating from several wall machines operating in the right-side hall on the second floor. Fourteen gutka pouch making machines were functioning in the hall.

3. 75 labourers were found working and were engaged in different activities like pouring filled plastic bags into machine hoppers, collecting pouches and making multi-pouch packs, etc. On being asked about the 60-70 plastic bags kept near 14 machines, Supervisor Manoj alias Meghraj told the CGST Officers that these bags contained ready-to-pack feed for the pouch making machines, while the bigger bags on the outer side contained ready- to-dispatch material. The material being packed in the pouches was Gutka, branded as “Suhana Pasand” and “SHK,” which was written on the pouches.

4. Manoj further disclosed that the left-side hall on the second floor, was used to store raw materials like Kattha, Supari, perfume tins, etc. On the third floor, there was a small room which housed a mixing machine for mixing the ingredients for mixing gutka. He disclosed that the premises belonged to Ranbir Singh, but the business was operated by A.K. Yadav with the help of Vishal Goyal. The team also met Rohit, who was a friend of A.K.Yadav. During the search, Manoj was unable to produce any stock records. The documents and mobile phones were taken for investigation. Since no stock register was available, the Officers seized goods as per Form GST INS-02. Copy was given to Pradeep with instructions for safe custody. Incriminating documents and diary, were seized.

5. Detailed Statements of various labourers, were recorded. Rohit, who was found present in the premises, stated that he is a labour contractor and proprietor of Om Sai Enterprises (GSTINs in Delhi and Haryana). He had Accounts in HDFC, Kotak, and Axis Bank, and his Haryana Firm did Supari cutting on commission. He further disclosed that he and Mr. A.K. Yadav, had earlier worked together at Shikhar Pan Masala but had no business partnership.

6. The CGST Team visited the house of Ranbir Singh and served him the Summons. His son, Mr. Pradeep Kumar, who received the Summons stated that the premises had been rented out to Avdhesh Kumar for gutka manufacturing, and that all the setup was arranged by Avdhesh Kumar.

7. The Statement of the Respondent Vishal Goyal was recorded on 15.02.2021 wherein he admitted being involved in the manufacture of Gutka and Pan Masala under the brand name ‘Suhana Pasand’ and that his other Firm M/s Balaji Traders dealt in su