In CRIM. APPEAL No.186 /2023 -SC-Top  Court sets aside bail condition directing appellant to deposit Rs 70 lakh where FIR  was in respect of wrongfully availing Input Tax Credit & no final assessment was done under GST Act
Justices Krishna Murari & B.V.Nagarathna [20-01-2023]

Read Order:SUBHASH CHOUHAN Vs. UNION OF INDIA & ANR 

Tulip Kanth

New Delhi, January 25, 2023: The Supreme Court has recently termed the bail condition directing appellant to deposit Rs 70 lakh as unsustainable where it was argued that the appellant was not under a legal liability to pay the said amount as FIR was in respect of wrongfully availing Input Tax Credit & no final assessment was done under GST Act.

The Division Bench of Justice Krishna Murari and Justice B.V.Nagarathna was considering a challenge to the Order passed by the Chhattisgarh High Court granting bail to the appellant subject to certain conditions. 

One of the conditions was that the appellant shall deposit a sum of Rs 70 lakh under protest, in favour of the Principal Commissioner, CGST, Raipur within a period of 45 days from the date of his release. It was this condition, which was under challenge.

It was the appellant’s case that the condition to deposit Rs 70 lakh within 45 days from the date of the release as a pre-requisite condition for the bail was not sustainable inasmuch as the First Information Report was in respect of wrongfully availing the Input Tax Credit of Rs 6,95,32,472.

Moreover, there was no final assessment in this regard under the GST Act. Hence, it was argued that it couldnot be presumed that the appellant was under a legal liability to pay the said amount.

“As an officer of this Court, Mr. K.M. Nataraj, learned ASG appearing for the Union of India/State has fairly stated that such a condition cannot be imposed while granting bail”, the Bench said.

Thus, the condition directing the appellant to deposit a sum of Rs.70 Lakhs is not liable to be sustained and is hereby set aside.