Randhir Kumar Chaudhary vs. The State Of Bihar

Held

The Court granted bail to the petitioner. The Court considered the rival submissions and noted that GST invoices and e-way bills are required to be prepared by the consignor. It also took into account that the entire prosecution case is based on documentary evidence, the petitioner's readiness to face departmental proceedings, and his fair antecedent. Consequently, the petitioner was directed to be released on bail upon furnishing bail bonds and sureties, subject to conditions under Section 482(2) of the Bharatiya Nagrik Suraksha Sanhita, 2023, and a condition that one bailor be a close family member. The Court did not expressly leave any issue undecided.

Facts

The petitioner, Randhir Kumar Chaudhary, owner of trucks involved in alleged use of forged GST invoices and e-way bills, apprehends arrest in connection with Galgalia P.S. Case No. 43 of 2026. The FIR was instituted by the Assistant Commissioner, State Tax, Kishanganj, alleging tax evasion and loss to the government exchequer. The trucks were intercepted, but the drivers fled. The petitioner's involvement is alleged solely by virtue of him being the owner of the trucks. The petitioner contends he had no role in preparing the forged documents, which are the responsibility of the consignor and consignee. He also notes the trucks are seized and expresses readiness to cooperate with departmental proceedings.

Key Issues

1. Whether the petitioner, as the owner of the trucks, can be held liable for the use of forged GST invoices and e-way bills, when he claims no active role in their preparation? (Mixed question of law and fact, concerning principles of vicarious liability and mens rea in tax evasion cases). Petitioner's arguments: The petitioner argued that his implication is solely based on truck ownership. He asserted that the preparation of GST invoices and e-way bills is the responsibility of the consignor and consignee, and neither the driver nor the owner can verify their authenticity. He suggested that penalties should be realized from the buyer or supplier. He also highlighted that the trucks are seized and offered to cooperate with the proceedings. Revenue/State's arguments: The State opposed the bail application, contending that specific accusations of the petitioner's involvement in tax evasion through forged documents have been leveled.