Lalit Narayan Jha @ Lalit Kant Jha vs. The Commissioner Of CGST And Cx And Anr

Facts

The petitioner, Lalit Narayan Jha, filed an application under Section 483 of BNSS, 2023, seeking bail for Shri Ashutosh Kumar Jha. Shri Ashutosh Kumar Jha was arrested on 03.02.2025 by the Inspector, CGST & CX, Itanagar Commissionerate, under Section 69 of the CGST Act, 2017, in connection with Alert Circular 01/2024-25, alleging offenses under Section 132(1)(b)&(c) of the CGST Act, 2017. The accused was initially arrested on 28.12.2024 in connection with Itanagar P.S. Case No. 182/2024. While in judicial custody for that case, the CGST & CX, Itanagar Commissionerate, sought his custody for 5 days via an Alert Circular filed on 29.01.2025. The Chief Judicial Magistrate endorsed this to the Judicial Magistrate First Class, who remanded the accused on 03.02.2025, finding him alleged to have committed CGST fraud. The accused has remained in judicial custody since then, though he was released on bail in Itanagar P.S. Case No. 182/2024.

Held

The Court held that the accused, Shri Ashutosh Kumar Jha, is entitled to be released on bail. The primary reasoning was that a charge-sheet had already been filed before the Court on 03.04.2025. The Court found that in light of the charge-sheet being filed, there would not be any requirement to keep the accused in custody. The ratio decidendi is that once a charge-sheet is filed in a case involving alleged CGST fraud, and further custodial interrogation is not deemed necessary, the accused is generally entitled to bail. The operative direction was to release the accused on bail upon furnishing a bail bond of Rs. 50,000/- with one surety of like amount to the satisfaction of the learned Judicial Magistrate First Class, Yupia. Conditions for bail included not leaving the jurisdiction of the Magistrate without prior permission and appearing before the Investigating Officer and the Court as and when called for. No issue was expressly left undecided.

Key Issues

1. Whether the accused, Shri Ashutosh Kumar Jha, is entitled to be released on bail in connection with Alert Circular No. 01/2024-25, given that a charge-sheet has been filed. Petitioner's Arguments: The petitioner argued that since the charge-sheet has already been filed against the accused on 03.04.2025, no further custodial interrogation is required, and therefore, the accused should be released on bail. Revenue/State's Arguments: The respondent No. 1 (Commissioner of CGST and CX) fairly submitted that with the filing of the charge-sheet, there might not be a requirement for continued custody. However, it was noted that the accused is a native of Bihar, and securing his attendance would be difficult without a local surety if bail were granted.