In CRM-M-33946-2022 – PUNJ HC - Punjab and Haryana High Court grants bail to petitioner accused of offenses under Central Goods and Services Tax Act, considering ongoing pre-charge evidence stage
Justice Manjari Nehru Kaul [08-05-2023]

Read Order: Shamim Akhtar v. Directorate General of GST Intelligence, Gurugram

Chahat Varma

Chandigarh, June 1, 2023: The Punjab and Haryana High Court has granted bail to the petitioner, who was accused of offenses under the Central Goods and Services Tax Act, 2017 (CGST Act). The court took into account that the trial was still in the pre-charge evidence stage and was unlikely to conclude in the near future.

The petitioner had sought the concession of regular bail under Sections 132(1)(A) & (I) of the CGST Act. The petitioner had contended that they were falsely implicated in the case, as evidenced by the absence of any cash or Agriculture Grade Urea being recovered from them. It was argued that the arrest of the petitioner on 26.04.2022 was in contravention of the statutory provisions of the CGST Act, as the adjudication and assessment of tax liability had not yet commenced. On the other hand, the respondent, while opposing the prayer and submissions made by the petitioner, contended that the Agricultural Grade Urea was utilized by the petitioner for producing Resin. The resin was subsequently sold without issuing tax invoices, resulting in a loss to the State Exchequer, on account of the evasion of GST.

The court found no justification for continuing the petitioner's incarceration and thus granted bail.