Non-Cooperative attitude and gravity of offence is factor to decide whether assessee shall be granted bail – High Court
Facts of the case:
- The applicant Mr. Rajesh Kumar Dudani is running two businesses in the name of Suryanchal Furnitech and M/s Doon Trading Company.
- The applicant is accused of claiming Input Tax Credit based on forged and fake invoices.
- He was summoned on 12.05.2022, under section 70 of the Central Goods and Services Tax Act,2017 (“the Act”) and approached the High Court seeking anticipatory bail.
Legal Precedence:
Rajesh Kumar Dudani vs. State of Uttarakhand and Another [(2022) 06 CCHGST 0758 UKHC]
Points Considered for Judgment:
- Each case depends upon its facts and circumstances. Custodial interrogation is one of the aspects, which is considered in the matters of anticipatory bail. The Hon’ble Supreme Court in the case of Siddharam Sitlingappa Mhetre vs. State of Maharashtra and others observed various factors and parameters that can be taken into consideration while dealing with the anticipatory bail.
- While considering the prayer for grant of anticipatory bail, a balance has to be struck between two factors, namely, no prejudice should be caused to the free, fair and full investigation and there should be prevention of harassment, humiliation and unjustified detention of the accused.
- In the cases cited on behalf of the applicant, no absolute rule is laid down that in the matters pertaining to the Act, custodial interrogation is not required. It cannot be said that anticipatory bail has to be granted in each and every case, in which a person is summoned under Section 70 of the Act.
- The allegations against the applicant are much grave. It is the case of generating fake and forged invoices without any actual movement of goods, so as to claim ITC. The Applicant has given categorical details of dubious transactions and has also submitted as to how in one day, the money has routed from different accounts to his accounts. The Applicant has also shown non-cooperative attitude during enquiry.
- Considering the gravity of offence, it was held that the Applicant is not entitled for anticipatory bail.
SW Point of View:
Hon’ble High Court of Uttarakhand held that anticipatory bail cannot be granted in each and every case, in which a person is summoned under Section 70 of the Act. This decision will ensure that each and every case is viewed on individual basis while granting anticipatory bail. The gravity of offence and attitude of the accused should be grounds for granting anticipatory bail for free, fair and full investigation of the case.
Megha Dhankhar, Executive- Indirect Tax, SW India
