Summary
A man was arrested in July 2022 under Section 132 of the CGST Act. He was accused of clandestinely moving 90,520 kg of raw tobacco from Gujarat to Delhi in seven trucks for unaccounted manufacture of chewing tobacco. The Revenue projected tax and cess of over Rs 15 crore, and said toll data showed 287 more such truckloads. The accused disputed these figures. The Rajasthan High Court refused bail. The Supreme Court granted it without going into the rival figures, which are for trial. Investigation was complete and the charge sheet filed. The maximum punishment was five years, and he had already spent over four months in custody. The evidence was mainly documentary, electronic and from official witnesses, so there was no real risk of tampering.
Issues
- Whether bail should be granted to a person accused of GST evasion under Section 132 of the CGST Act after the investigation was complete and the charge sheet filed.
Provisions considered
- Section 132(1)(a), (h), (k), (l) and 132(5), Central Goods and Services Tax Act, 2017Even taking the alleged evasion at the level in Section 132(1)(l)(i), the punishment is imprisonment up to five years and fine, which weighed in granting bail. (¶¶ 1, 6)
- Section 439, Code of Criminal Procedure, 1973Bail granted on conditions to be fixed by the trial court, including deposit of passport. (¶¶ 1, 7)
Held
- The rival contentions on the quantum of tobacco and tax involved are matters to be established by evidence at trial and need not be examined at the bail stage. (¶ 5)
- Where investigation is complete and a charge sheet filed, the maximum sentence is five years, the accused has spent over four months in custody, trial will take time, and the prosecution evidence is largely documentary, electronic and through official witnesses leaving no apprehension of tampering, bail is appropriate. (¶ 6)
Result
Special Leave Petition (Crl.) No. 10319 of 2022 allowed; the Rajasthan High Court (Jaipur Bench) order in S.B. Criminal Miscellaneous Bail Application No. 12475 of 2022 set aside, and the petitioner directed to be released on bail on conditions imposed by the trial court, including deposit of his passport.