D.I.Desarda vs. Union Of INDIA

Held

The Court held that it would be just and expedient to order the release of the petitioner on anticipatory bail. The reasoning was based on the admitted fact that the amount in question had already been deposited by the accused after receiving notices. Additionally, the CESTAT had already set aside the penalty imposed on the petitioner. Therefore, without expressing any opinion on the merits of the case, the Court granted anticipatory bail. The operative direction was that if the petitioner surrenders before the trial court within ten days from the date of the order, he shall be released on bail, subject to the satisfaction of the said court.

Facts

The petitioner, Vijay Singhvi, Factory Manager Cum Authorized Signatory of M/s Jain Irrigation System Limited, filed a petition under Section 438 of the Code of Criminal Procedure, 1973, seeking anticipatory bail. This was in relation to Complaint No. 271/2018 filed by the Union of India (UOI) for alleged offences under Sections 9(1)(b), 9(1)(bb), and 9(1)(bbb), 9(aa) of the Central Excise Act, 1944. The petitioner's counsel submitted that the disputed amount had already been deposited with the department. Furthermore, an order dated 05.10.2018 by the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) had set aside the penalty imposed on the petitioner. The Superintendent, CGST, Alwar, for the respondent, admitted that the amount in question had been deposited by the accused.

Key Issues

The primary question before the Court was whether the petitioner was entitled to anticipatory bail in light of the facts presented. The petitioner argued that since the disputed amount had been deposited with the department and the penalty imposed by the CESTAT had been set aside, there was no impediment to granting anticipatory bail. The respondent, Union of India, admitted the deposit of the amount. The Court had to decide if these circumstances warranted the grant of anticipatory bail under Section 438 CrPC, considering the alleged offences under the Central Excise Act, 1944.