K.Kanagarathinam vs. The Superintendent Of CGST And Central Excise

Held

The Court noted the submission made by the learned counsel for the petitioner that the petitioner had complied with the bail order dated February 2, 2021. The compliance involved depositing a total sum of Rs. 1 Crore to the Government of India account under Form GST DRC-03. Specifically, Rs. 50,00,000/- was paid on February 18, 2021, and Rs. 50,00,000/- was paid on February 22, 2021. The Court recorded this submission. Based on this recorded submission of compliance, the Court proceeded to close the petition. The Court did not delve into the merits of the case or the underlying GST violations, as the primary purpose of this hearing was to confirm adherence to the bail condition. The ratio decidendi for closing the petition is the fulfillment of the pre-condition for bail as ordered by the Court.

Facts

This matter concerns a petition for bail filed by K. Kanagarathinam, the sole accused, before the Madurai Bench of the Madras High Court. The petitioner sought bail in connection with an offense registered by the Headquarters Preventive Unit (HPU) of CGST, Madurai, under Original Order No. 15/2020-21 dated December 22, 2020. The case involves allegations of supplying bogus invoices without the actual supply of goods. On February 2, 2021, the Court had granted bail to the petitioner on the condition that a sum of Rs. 1 Crore be deposited to the Government of India account within three weeks, to be paid under Form GST DRC-03, specifically noting it as payment towards penalty for the alleged offense. The present hearing on March 2, 2021, was for reporting compliance with this bail condition.

Key Issues

1. Whether the petitioner has complied with the bail condition imposed by this Court on February 2, 2021, requiring the deposit of Rs. 1 Crore to the Government of India account under Form GST DRC-03 as penalty for the alleged supply of bogus invoices without goods. Petitioner's Argument: The learned counsel for the petitioner submitted that the petitioner has complied with the Court's order by depositing the stipulated amount. Specifically, Rs. 50,00,000/- was paid on February 18, 2021, and another Rs. 50,00,000/- was paid on February 22, 2021, both under Form GST DRC-03 with the prescribed remarks. The petitioner relied on the fact of these payments as fulfillment of the bail condition. Revenue's Argument: The judgment does not record any specific arguments presented by the respondent (State represented by the Superintendent of CGST and Central Excise) on this date. The proceedings appear to have focused on the petitioner's submission regarding compliance.