Page 202 - GSTL_26th March 2020_Vol 34_Part 4

696 GST LAW TIMES [ Vol. 34
Act, 2017/Tamil Nadu Goods and Services Tax Act, 2017 — In Re : V. Ponraj
(A.A.R. - GST - T.N.) .................................. 635
Bail - Default bail - Offence under GST law - Bail application moved and
charge sheet filed on 61st day from date of arrest - HELD : Ratio of
judgment in Uday Mohan Acharya not well nigh within facts and
circumstances of instant case - Petitioner remanded in custody on 6-6-
2019 and bail application filed on 6-8-20019, i.e., on same day of
submission of final report - Indefeasible right under proviso to Section
167(2) of Code of Criminal Procedure, 1973 for release of petitioner in
default in filing challan within prescribed time, arise in view of
Constitution Bench decision of Hon’ble Supreme Court - Indefeasible
right accruing to accused to be enforceable only prior to filing of challan
and does not survive or remain enforceable on challan being filed, if
already not availed of - Section 167(2) of Code of Criminal Procedure,
1973 — Arvind Kumar Munka v. Union of India (Cal.) ................... 29
— Fraudulent availment of Input Tax Credit (ITC) - Matter still at
investigation stage - Contention that petitioner created 26 fake firms and
issued fake invoices to the tune of ` 494.16 crores to facilitate claiming of
input credit to the tune of ` 108.36 crores and that petitioner involved in
using data of individuals for creating fake firms to claim ITC - Statements
by petitioner’s accountant and brother that petitioner involved in
creating fake firm under GST - Bail denied - Section 69 of Central Goods
and Services Tax Act, 2017 - Section 438 of Code of Criminal Procedure,
1973 — Mohammed Yunus@Mohamed Yunus Khan v. State of Rajasthan (Raj.) ........ 59
— Offence under Sections 132(1)(a), 132(1)(b) and 132(1)(c) of Central Goods
and Services Tax Act, 2017 - Issuance of GST invoices without any supply
of goods to buyers on commission basis, causing loss of more than ` 98
crores approximately - Petitioner urging instant petition lodged without
sanction of Commissioner contrary to mandate provided under Section
134 ibid - HELD : Judgment in case of Sanjay Kumar Bhuwalka [2018
(362) E.L.T. 568 (Cal.)] distinguishable from fact - In view of gravity of
economic offence and bearing in mind principle laid down in case of P.V.
Ramanna Reddy [2019 (26) G.S.T.L. J175 (S.C.)], petitioner not entitled to
be enlarged on bail, however, petitioner at liberty to approach authority
for compounding of offence under Section 138 of Central Goods and
Services Tax Act, 2017 — Arvind Kumar Munka v. Union of India (Cal.) ......... 29
— under GST - Onerous conditions - Relaxation thereof - On being granted
bail by High Court in principal, concerned trial Court fixing an amount
of ` 2 crore each for two sureties as a condition of bail - Notwithstanding
that there is huge evasion of GST involved in this case, fixing
extraordinary surety amount is against spirit of bail, is clearly onerous
and amounts to denial of bail - In view of above, impugned order is
modified and amount of surety is reduced to ` 50 lakh each for two
sureties - Section 482 of Code of Criminal Procedure, 1973 — Mohit Gupta v.
State of Uttar Pradesh (All.) ................................ 44
Bank Account - Provisional attachment - Provisional attachment of current
account having debit balance at stage of pending investigation - Assessee
running unit with more than 100 families dependent on assessee - No
proceedings pending under Section 74 of Central Goods and Services Tax
Act, 2017 which would start on issuance of show cause notice -
Department seized record of assessee who supplied several documents
and put personal appearance through Directors and employees - HELD :
Attachment order quashed as it would ruin business of dealer and not
GST LAW TIMES  26th March 2020  298