Subhash Chandra Tyagi S/O Late Shri Chiranji Lal vs. Directorate General Of Goods And Service Tax

Held

The Court allowed the bail application, releasing the petitioner, Subhash Chandra Tyagi, on bail under Section 439 Cr.P.C. The decision was based on considering the submissions of both parties, the nature of allegations, the petitioner's length of custody (since January 8, 2020), the pendency of investigation, the compoundable nature of the offence, and the severity of punishment under Section 132 of the CGST Act. However, the Court explicitly stated that this decision was made without expressing any opinion on the merits of the case. The petitioner is directed to furnish a personal bond of Rs. 1,00,000/- with two sureties of Rs. 50,000/- each to the satisfaction of the trial court, and to comply with all conditions under Section 437(3) Cr.P.C.

Facts

The petitioner, Subhash Chandra Tyagi, is seeking bail in connection with a criminal complaint registered for offences under Section 132 of the Central Goods & Services Tax Act, 2017. The Directorate General of Goods and Service Tax Intelligence, Jaipur, is the non-applicant. The petitioner was arrested on January 8, 2020, and a complaint was filed on March 5, 2020. The petitioner's counsel stated that companies involved have been closed after obtaining NOCs and that Rs. 2.6 crore has been recovered. The petitioner has no criminal antecedents and the offence is compoundable with a maximum sentence of 5 years. The prosecution alleges fraudulent input tax credit and forged GST credit to the tune of Rs. 33.50 crore, with investigation against co-accused pending.

Key Issues

1. Whether the petitioner is entitled to be released on bail under Section 439 Cr.P.C. given the nature of allegations, length of custody, pendency of investigation, and the compoundable nature of the offence? Petitioner's Arguments: The petitioner contends they have been falsely implicated, that the companies involved have been closed with proper NOCs, that Rs. 2.6 crore has been recovered, that they have been in judicial custody since January 8, 2020, that a complaint has been filed, that investigation against co-accused is pending, that the offence is compoundable, and that they have no criminal antecedents. They pray for release on bail. Revenue's Arguments: The Directorate General of Goods and Service Tax Intelligence opposes the bail application, citing grave allegations of fraudulently obtaining input tax credit and passing forged GST credit to the tune of Rs. 33.50 crore. They argue that the investigation is still pending and therefore, the petitioner does not deserve bail.