Manmohan Lalman Agarwal vs. State Of Gujarat

Facts

The applicants, Manmohan Lalman Agarwal and another individual, filed an application for anticipatory bail under Section 438 of the Code of Criminal Procedure, 1973. This application was filed in connection with file No.IV/06-Prev/32/Gr.IV/2019-20 with the Central GST and Central Excise, Vadodara-II, for alleged offences punishable under the GST Act. The prosecution alleged that the applicants were involved in generating fake and fabricated documents to avail illegal input tax credit, causing a significant loss to the revenue. The applicants contended that considering the nature of the offence, they should be enlarged on bail with suitable conditions. The State opposed the application, citing the gravity of the offence. The Court considered the age and medical condition of the applicants, the fact that their statements were recorded, and the absence of special circumstances against them.

Held

The Court allowed the application for anticipatory bail. The Court found that the applicants, aged 69 and 65 years respectively, with the latter being a lady accused and a nominal partner, had their statements recorded during the investigation and had cooperated with the inquiry. The Court noted that the Additional Public Prosecutor, under instructions from the Investigating Officer, could not bring forth any special circumstances against the applicants. Relying on the principles laid down in Siddharam Satlingappa Mhetre vs. State of Maharashtra and Others and Shri Gurubaksh Singh Sibbia and others, the Court was inclined to grant anticipatory bail. The applicants were directed to be released on bail upon furnishing a personal bond of Rs. 10,000/- each with a surety of like amount, subject to several conditions including cooperation with the investigation, presence at the police station on a specified date, not tampering with evidence or witnesses, furnishing address, marking presence every fifteen days, and not leaving India without court permission. The Court also clarified that the Investigating Agency could apply for police remand, and the Magistrate would decide on merits, with the applicants to be set free upon completion of any police remand period, subject to other bail conditions. The Trial Court was cautioned not to be influenced by the prima facie observations.

Key Issues

1. Whether the applicants are entitled to anticipatory bail under Section 438 of the Code of Criminal Procedure, 1973, considering the allegations of generating fake documents and availing illegal input tax credit under the GST Act? The petitioner argued that given the nature of the alleged offence, they should be granted anticipatory bail with appropriate conditions. They also highlighted the age and medical ailments of the applicants and that their statements had been recorded during the investigation. The revenue (State of Gujarat and Central GST) opposed the application, contending that the role of the applicants in generating fake documents and causing revenue loss was evident from employee statements, and therefore, anticipatory bail should not be granted due to the gravity of the offence.