Hitendrabhai Chandrakantbhai Shah vs. State Of Gujarat

Held

The Court held that the applicant is entitled to regular bail. The Court considered the allegations that the applicant had taken undue advantage by forging documents and claiming input tax credit. It also noted that some co-accused had been enlarged on bail. In the larger interest of justice, the Court decided to exercise its judicial discretion to enlarge the applicant on bail. The Court granted bail on a personal bond of Rs. 15,000/- with one surety of like amount, subject to several conditions, including not misusing liberty, not acting against prosecution interests, surrendering passport, not leaving India without permission, marking presence at the police station periodically, furnishing address, and not alienating landed property without prior permission. The Court also directed the highest officer of the Sales Tax Department to personally look into the matter and initiate proceedings for recovery of any undue money or benefit claimed as input tax credit, utilizing all provisions of law. The Court emphasized that the trial court should not be influenced by these preliminary observations.

Facts

This is a bail application filed under Section 439 of the Code of Criminal Procedure by Hitendrabhai Chandrakantbhai Shah. The applicant sought regular bail in connection with C.R.No.I-04 of 2017, registered with CID Crime Police Station, Ahmedabad Zone. The FIR alleged offences under various sections of the Indian Penal Code, including cheating and forgery, and also under Sections 85(1)(b)(c)(e)(f), 85(2)(j), and 85(4) of the Gujarat Value Added Tax, 2003. The applicant's counsel argued for bail based on the nature of the offence, while the State opposed it due to the gravity of the allegations. The Court considered the applicant's alleged role in forging documents to claim input tax credit and noted that some co-accused had already been enlarged on bail.

Key Issues

1. Whether the applicant is entitled to regular bail in connection with C.R.No.I-04 of 2017, registered for offences under the Indian Penal Code and the Gujarat Value Added Tax Act, 2003, considering the nature and gravity of the allegations and the applicant's role. Petitioner's Argument: The petitioner argued that considering the nature of the offence, the applicant should be enlarged on regular bail by imposing suitable conditions. The petitioner relied on the fact that some co-accused had already been granted bail. Revenue's Argument: The respondent-State, through the learned Additional Public Prosecutor, opposed the grant of regular bail, citing the nature and gravity of the offence.