Badal Gour vs. Union Of INDIA

Held

The High Court granted regular bail to the applicant, Badal Gour. The Court considered the facts and circumstances, the nature of the allegations, and crucially, the fact that the complaint and evidence were procured in the matter of Ishan Gupta. The Court noted that no incriminating material was recovered at the instance of the present applicant and that the applicant was not involved in the alleged acts consciously. Additionally, the Court took into account that the applicant is a transgender person, has been in jail since August 6, 2024, and that the charge sheet/complaint has been filed, with the conclusion of the trial likely to take time. Without commenting on the merits of the case, the Court found it inclined to grant bail.

Facts

The applicant, Badal Gour, is seeking regular bail in connection with a GST fraud case. The prosecution alleges that he masterminded a network of six fake firms, through which he fraudulently availed and passed on Input Tax Credit (ITC) amounting to Rs. 29,13,74,707/- and Rs. 34,23,51,874/- respectively, resulting in a total tax evasion of Rs. 63,37,26,581/-. The applicant was arrested on August 6, 2024, after his statement was recorded under Section 70 of the CGST Act, 2017. Documents and a laptop with tally data from five of the six fake firms were recovered. A complaint has been filed by the Superintendent, Central GST, after sanction from the Commissioner.

Key Issues

1. Whether the applicant is entitled to regular bail given the allegations of masterminding a fake firm network and causing significant tax evasion under Sections 132(1)(B) and 132(1)(c) of the CGST Act, 2017? Petitioner's Arguments: The applicant contends he is innocent and falsely implicated. He argues that another individual, Ishan Gupta, is being prosecuted by the DGGI for the same firms, and the CGST authorities have deliberately suppressed this fact to inflate the gravity of the alleged offense against him. He claims that one firm, Agrawal Enterprises, is not associated with him, and he was enticed by Ishan Gupta without being aware of the fraud. He asserts there is no evidence of his active participation in the charge sheet and that he has been in jail since August 6, 2024, with the trial likely to take time. Revenue's Arguments: The respondent (Union of India) opposes the bail application, arguing that the applicant caused a loss to the government exchequer by creating six non-existent firms and availing and passing on unauthorized ITC of Rs. 63,37,26,581/- based on fake bills, making him ineligible for bail.