GST Update

Desk of CA Praveen Sharma – 904 Series (CAPS)

Delhi High Court in the case of Directorate General of GST Intelligence

• The petition was filed seeking cancellation of bail granted to the accused in a GST evasion case involving alleged tax evasion of around ?72 crore through clandestine cigarette supplies.

• The accused was arrested in July 2020 and was granted bail by the Chief Metropolitan Magistrate, considering factors such as partial GST deposit, pending adjudication, absence of a criminal complaint, medical condition, and the likelihood of delay in trial.

• The department challenged the bail order, contending that the trial court failed to appreciate the gravity and magnitude of the alleged economic offence and placed undue reliance on a comparatively small deposit amount.

• The High Court observed that economic offences are serious in nature and generally require a stricter approach while granting bail, particularly at an early stage of investigation.

• The Court noted that the trial court had not adequately considered the seriousness of the allegations and the potential risk of evidence tampering while granting bail.

• However, the High Court also observed that even after more than five years, the department had neither completed the investigation nor filed a criminal complaint, indicating prolonged and unexplained delay.

• Holding that an accused cannot be kept in indefinite custody due to departmental inaction, and in the absence of any allegation of misuse of bail, the High Court declined to cancel the bail and dismissed the petition.

LINK:  CA. Praveen Sharma on Linkedin

Regards
CAPS