Dinesh Vyas vs. The Union Of INDIA Through GST Council

Held

The Court allowed the petitioner's application for bail. The primary consideration for the Court was the period of custody, which exceeded 62 days. The Court found this period sufficient to incline it towards granting bail. The reasoning is based on the principle that prolonged incarceration, especially when the investigation is ongoing, warrants consideration for bail. The ratio decidendi is that an extended period of custody, in the context of an economic offense under the GST Act, can be a ground for granting bail. The operative direction was to release the petitioner on bail upon furnishing a bail bond of Rs. 50,000/- with two sureties of the like amount. Additionally, the petitioner was directed to cooperate with the Investigating Officer and appear before the Investigating Authority once a fortnight until the completion of the investigation.

Facts

The petitioner, Dinesh Vyas, is an accused in Complaint Case No. 2144 of 2018, facing charges under Sections 132(1)(c) read with Section 132(5) of the Central Goods & Services Act, 2017. The allegation against him is that he illegally availed Input Tax Credit. The petitioner has been in custody since July 24, 2018, for over 62 days. The matter came before the High Court of Jharkhand at Ranchi in Bail Application No. 6909 of 2018, where the petitioner sought release on bail. The Union of India, represented by the GST Council, Jamshedpur, was the opposite party.

Key Issues

1. Whether the petitioner is entitled to be released on bail under Section 132(5) of the Central Goods & Services Act, 2017, considering the period of custody? The petitioner argued that he has been in custody for over 62 days and therefore, should be granted bail. The petitioner relied on the fact of his prolonged detention. The revenue (Union of India) opposed the prayer for bail, as indicated by the learned A.P.P. opposing the prayer.