Additional Commissioner Of Commercial Taxes vs. Sri Mukund Agarwal

Heard Sri. Aditya Vikram Bhat, learned AGA for the appellant and Sri. M. Arun Shyam, learned Senior counsel for Sri. Darshan R., learned counsel for respondent No.

Learned AGA in addition to the grounds urged in the appeal memo would submit that the learned Single Judge could not have granted interim bail and could not have directed release of respondent No.1 when the interim bail was rejected by the Special Court for Economic Offences in Crime No.18/2025 in the writ petition. Further, learned AGA would submit that the said rejection of bail is not the subject matter of the writ petition. The subject matter of writ petition and the prayer of the petitioner is GST enquiry by the appellant herein.

Learned AGA placed on record the memo along with the order dated 15.07.2025 in Special Leave to Appeal (Criminal) No.3736/2025, wherein the bail granted by the learned Single Judge in an identical fact situation is set aside with a direction to the petitioner therein to surrender before the trial Court and to seek regular bail. Learned AGA would submit that learned Single Judge in the instant case also in a hurried manner directed release of the respondent-petitioner. Therefore, he would pray for a similar order i.e., passed by the Hon'ble Apex Court. HC-KAR NC: 2025:KHC:30481-DB

Per contra, Sri. M. Arun Shyam, learned Senior counsel for respondent No.1 would submit that the learned Single Judge in the instant case after considering the contentions of the appellant as well as respondent No.1 by a detailed order directed release of respondent No.1 by interim order dated 01.04.2025 in Writ Petition No.9586/2025. No.3736/2025, would have no application to the facts of the present case.

Learned Senior counsel while referring to the Hon'ble Apex Court order in Senior Intelligence Officer (Supra) would submit that the Hon'ble Apex Court without going into the merit or demerits of the case, has only on the ground that the interim bail was granted hurriedly has set aside the order with a direction to the respondent therein to surrender and to apply for regular bail.

Further, learned Senior counsel would invite attention of this Court to interim order dated 22.04.2025 HC-KAR NC: 2025:KHC:30481-DB passed in the instant appeal and would submit that respondent No.1 co-operated with the Investigating Authority. Therefore, he also submits that there is no need for the appellant to take him into custody. Therefore, he prays for dismissal of the appeal.

Having heard the learned counsel for the parties and on perusal of the entire writ appeal papers, the only point that would fall for consideration is as to whether interference of this Court is warranted to the interim order dated 01.04.2025 which is impugned herein. The answer to the above point would be in the negative for the following reasons:

Writ Petition No.9586/2025 with the following prayer and interim prayer was filed on 28.03.2025. "a) Call for records in GST enquiry pending before the Respondent No.2 in File No. ADCOM/ENF/SZ/CTO-46/INS/2024-25;

Heard the learned Senior State Counsel for the appellant and the learned Sr.Advocate appearing for respondents.

Learned Senior counsel appearing for respondent No.1 submitted that the respondent No.1 has co-operated with the investigation by attending the office of the appellant whenever he was called in pursuance of the interim order dated 22.04.2025 passed in the present appeal. The said submission is not disputed by the learned AGA.

The purpose of taking a person into custody is for the purpose of interrogation and investigation. The purpose of taking the respondent into custody is achieved by interrogation or investigation of the respondent. However, learned AGA submits that further investigation is under process.

Learned Senior counsel for respondent No.1 would submit that respondent No.1 would further co-operate with the HC-KAR NC: 2025:KHC:30481-DB appellant in further investigation and the said undertaking is placed on record.

Furthermore, learned counsels appearing for the parties would submit that respondent No.1 has complied with the conditions of interim bail and further learned Senior counsel for respondent No.1 would submit that those conditions would bind respondent No.1 during the pendency of the writ petition.

The correctness or otherwise of the arrest of respondent No.1 is to be gone into and decided by the learned Single Judge. If the correctness or otherwise of the interim order of the learned Single Judge is answered in the present appeal, it may affect the contentions of the either parties before the learned Single Judge. Therefore, we have kept open all the contentions of the parties.

Learned AGA places reliance on the decision of the Hon'ble Apex Court in Senior Intelligence Officer (Supra) in support of his contention. On going through the decision of the Hon'ble Apex Court (Supra), we are of the considered opinion that in the said case the Hon'ble Apex Court, without going into HC-KAR NC: 2025:KHC:30481-DB the merits or demerits of the case, only on the ground that in a hurried manner the learned Single Judge has granted interim bail, had set aside the same with a direction to the respondent therein to surrender and seek regular bail.

In the instant case, the writ petition was filed on 28.03.2025 and on the same day, notice was ordered to be served on learned AGA appellant herein and the matter was ordered to be listed on 01.04.2025 on which date, after hearing the submission of the learned AGA as well as respondent No.1, impugned order is passed. Therefore, the said decision would have no application to the facts of the present case. More over, by interim order passed in this appeal, interest of the appellant is protected.

In light of the above, we decline to interfere with the impugned interim order passed by the learned Single Judge. However, we request the learned Single Judge to dispose of the pending writ petition expeditiously.

All contentions are left open and the learned Single Judge shall proceed to hear and pass orders without being HC-KAR NC: 2025:KHC:30481-DB influenced by any of the observations made during the course of the interim order or during the course of this order.

Accordingly, writ appeal stands disposed of. (S.G.PANDIT) JUDGE (K. V. ARAVIND) JUDGE