Petition for Special Leave to Appeal (Crl) No. 10319 of 2022

REPORTABLE

IN THE SUPREME COURT OF INDIA

EXTRA-ORDINARY APPELLATE JURISDICTION

PETITION FOR SPECIAL LEAVE TO APPEAL (Crl.) No.10319 of 2022

Ratnambar Kaushik

…..

Petitioner

Versus

Union of India

`

…..

Respondent

O R D E R

1.

The petitioner is before this Court, assailing the order dated 21.10.2022,

passed by the High Court of Judicature at Rajasthan, Bench at Jaipur in S.B. Criminal

Miscellaneous Bail Application No.12475 of 2022. Through the said order the High

Court has dismissed the application filed by the petitioner hereunder under Section

439 of Code of Criminal Procedure¹ seeking bail in the proceedings for the offence

alleged against him under Section 132(1)(a),(h),(k) and (l) read with Section 132(5) of

the Central Goods and Services Tax Act, 2017² .

2.

Heard Shri Mukul Rohatgi, Shri C.S. Vaidyanathan, Shri Maninder Singh

learned senior counsel for the petitioner and Shri Balbir Singh learned Additional

1 For short “Cr.P.C.”

2 For short “GST”

Page 1 of 5

Digitally signed by

Nidhi Ahuja

Date: 2022.12.05

17:04:55 IST

Reason:

Signature Not Verified

Petition for Special Leave to Appeal (Crl) No. 10319 of 2022

Solicitor General for the respondent. In that light, we have perused the petition

papers as also the counter affidavit filed on behalf of the respondent.

3.

The gist of the allegations against the petitioner in the prosecution initiated

against him is that the petitioner had clandestinely transported raw unmanufactured

tobacco brought from Gujarat by 7 trucks weighing 90,520 kgs. It is alleged that raw

tobacco was cleared in the name of M/s Maa Ambey Enterprises, Bakoli from M/s

Arihant Traders, Kheda, Gujarat but the said trucks went to Patparganj Area to M/s

Galaxy Tobacco in Delhi. It is further alleged that the said quantity of unmanufactured

tobacco has been apparently used in the clandestine manufacture and supply of

chewing tobacco without payment of leviable duties and tax. The petitioner contends

that even if the tax is levied at 28%, the value would be around ₹10,30,824/-.

However, as per the case of the respondent, the total tax/duty and cess involved

would be ₹15,57,28,345/-. The said contention has been raised on the basis of the

projected manufacture of zarda pouches from the said quantity of unmanufactured

tobacco. Thus on the projected number of pouches, the tax amount if taken into

consideration, would be to that extent. It is further contended on behalf of the

respondent that in the course of the investigation it has also come to light, apart from

the 7 trucks, 287 more trucks loaded with raw unmanufactured tobacco has been

transported as per the details obtained from the Toll/RFID data of NHAI, which shows

the movement of the trucks.

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Petition for Special Leave to Appeal (Crl) No. 10319 of 2022

4.

Insofar as the allegations made against the petitioner are concerned,

learned senior counsel for the petitioner while rebutting the same would contend that

at this juncture, such allegations made by the respondent against the petitioner are

far-fetched. Even if one accepts as correct, the allegation on which the proceedings

is predicated, wherein 90,520 kgs. of raw/unmanufactured tobacco in 7 trucks is taken

note of, the GST, if reckoned, comes to only ₹1,93,26,020/-. It is contended that the

sum of ₹11,04,34,400/- shown as cess by the respondent is even without the proof of

manufacture of zarda and it has been done only to indicate the projected value of

more than ₹15 Crores. Learned senior counsel for the petitioner therefore disputed

the allegations and contended that such allegations have been made only to allege

cognizable and non-bailable offence against the petitioner so as to deny bail and take

him into custody.

5.

Though allegations and counter allegations are made, at this stage, it would

not be necessary for us to advert to the details of the rival contentions, since the

ma