CGST Delhi South vs. Prateek Jha
Held
The Court held that it would not be appropriate to cancel the bail granted to the respondent. The reasoning was based on the fact that the respondent had offered to make payment of the pending GST dues and had, in fact, made the entire outstanding payment as per the payment schedule proposed by him and noted in the impugned order dated February 24, 2021. The Court acknowledged that the petitioner's counsel admitted that the outstanding payment had been made. Therefore, the Court found no grounds to interfere with the bail order. The petition was dismissed, and any pending applications were disposed of.
Facts
The petitioner, CGST Delhi South, filed a petition seeking cancellation of bail granted to the respondent, Prateek Jha, on February 24, 2021. The respondent was taken into custody on February 3, 2021, and his initial bail application was dismissed on February 8, 2021. The allegations against the respondent were that he misappropriated GST amounting to Rs. 24,96,42,318/-, collected from customers but not deposited with the government. The petitioner argued that bail should not have been granted after only 14 days with no change in circumstances. However, the impugned order noted that the respondent had offered to make payment of the pending GST dues and proposed a payment schedule, which was also stated in the order. The petitioner's counsel admitted that the outstanding payment has since been made as per the payment schedule.
Key Issues
1. Whether the bail granted to the respondent on February 24, 2021, should be cancelled, considering the allegations of misappropriation of GST to the tune of Rs. 24,96,42,318/-. Petitioner's arguments: The petitioner contended that the bail was granted without a significant change in circumstances after the initial bail application was dismissed. They argued that the respondent had misappropriated a substantial amount of GST collected from customers, which was not deposited with the government. Respondent's arguments: The respondent, as noted in the impugned order, offered to make payment of the pending GST dues and proposed a payment schedule. The petitioner's counsel subsequently admitted that the outstanding payment has been made as per this schedule.
Sections Cited
None mentioned
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Cause title — parties, addresses and appearances
O R D E R %
2022
This petition is for cancellation of the bail granted to the respondent vide order dated 24.02.2021. 2. It is the submission of learned counsel for the petitioner that the petitioner was taken in custody on 03.02.2021 and his first bail application was dismissed on 08.02.2021. The allegations are the accused/respondent had misappropriated GST to the tune of Rs.24,96,42,318/- which he had collected from the customers but did not deposit with the government.
It is submitted after about 14 days with no change in circumstances, the bail ought not to have been granted. However, a bare perusal of the impugned order would show the respondent had rather offered to make payment of the pending dues of GST and the proposed payment schedule is also stated in the impugned order dated 24.02.2021. 4. Learned counsel
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