Vikas Agarwal vs. Union Of INDIA And 2 Others

Facts

A complaint was filed on August 18, 2021, under Section 132 of the CGST Act, 2017, against the applicant, Vikas Agarwal, and three co-accused. They are alleged to have issued tax invoices to bogus firms, resulting in the evasion of government revenue amounting to Rs. 32.56 Crores. The Commissioner, CGST & Central Excise, Agra, authorized the arrest of these individuals, who were subsequently arrested on August 18, 2021, and have been in jail since. The applicant contends he is innocent, falsely implicated, and not a partner of the co-accused. He notes that no search was conducted at his premises and that the proprietor of M/s Agrawal Trading Company, Rishab Mittal, who has been granted bail, was involved in the iron scrap business. The applicant also highlights that co-accused Varun Gupta has also been granted bail.

Held

The Court allowed the bail application of the applicant, Vikas Agarwal. The decision was based on the principle of parity, noting that co-accused Rishab Mittal and Varun Gupta had already been granted bail by the High Court after considering the facts and law. The Court found the applicant's case to be on similar footing and therefore entitled to the same benefit. While allowing the bail, the Court explicitly stated that it was not expressing any opinion on the merits of the case. The applicant was directed to be released on bail upon furnishing a personal bond and two sureties to the satisfaction of the court concerned, subject to five specific conditions aimed at ensuring his cooperation with the trial and preventing any misuse of liberty or interference with evidence or witnesses. The Court also stipulated that in case of breach of any condition, the prosecution would be at liberty to move for bail cancellation.

Key Issues

1. Whether the applicant is entitled to be released on bail, considering his alleged involvement as a mastermind in GST evasion of Rs. 32.56 Crores, and the arguments presented by both sides. The applicant argued that he is innocent, falsely implicated, and has no connection to the alleged offense. He emphasized that no search was conducted at his premises and that co-accused Rishab Mittal and Varun Gupta have already been granted bail by this Court, making his case identical and similar. He also stated he has no criminal history and will cooperate with the trial if released. The revenue (Union of India and others, represented by CGST & Central Excise) opposed the bail application, asserting that the applicant is the mastermind behind the GST evasion of Rs. 32.56 Crores and has raised objections in their counter-affidavit, thus not being entitled to bail.