Sandeep Bansal vs. Union Of INDIA Central GST Office

Held

The Court granted regular bail to the applicant, Sandeep Bansal. The decision was based on several factors, including the nature of the allegations, the fact that a similarly situated co-accused, Hemant Kasera, had already been granted bail by the High Court in a similar case, the applicant's prolonged period of incarceration since April 16, 2024, and the filing of the charge-sheet/complaint. The Court noted that the conclusion of the trial was likely to take time. While the respondent argued that the applicant actively committed and abetted the offense and had confessed to his involvement, the Court chose to grant bail without commenting on the merits of the case. The applicant was directed to furnish a personal bond of Rs. 1,00,000 with one solvent surety to the satisfaction of the concerned Court. The bail order is to remain in force until the disposal of the case.

Facts

The applicant, Sandeep Bansal, is seeking regular bail in connection with Crime No. 05/FIC//GST/2024-25, registered under Sections 132(1)(c) and 132(1)(i)(1) of the CGST Act, 2017. The prosecution alleges that Hemant Kasera operated a network of fake firms using others' credentials, and that fake Input Tax Credit (ITC) was passed on to M/s Bansal Traders, M/s Om Traders, and M/s HMS Traders, which were managed and controlled by the applicant. The total fake ITC availed was Rs. 6,94,28,952. The applicant was arrested on April 16, 2024. The charge-sheet/complaint has been filed, and the applicant has been in custody since April 16, 2024.

Key Issues

1. Whether the applicant is entitled to regular bail under Section 483 of the Bharatiya Nagarik Suraksha Sanhita, 2023, considering the allegations of availing inadmissible Input Tax Credit (ITC) from fake entities in violation of Section 16 of the CGST Act, 2017? Petitioner's arguments: The applicant claims innocence and argues that the prosecution's case is baseless. He states he is engaged in scrap material trading and is GST registered. He highlights that a similarly situated co-accused, Hemant Kasera, has already been granted bail by this Court. He also points out that the charge-sheet has been filed and he has been in jail since April 16, 2024. Non-Applicant's (Union of India) arguments: The respondent opposes the bail application, acknowledging that Hemant Kasera was granted bail. However, it contends that the applicant actively committed and abetted the offense of availing inadmissible ITC from fake entities without actual receipt of goods, violating Section 16 of the CGST Act. The respondent asserts that the applicant has admitted to the evidence and the conclusions drawn, and has confessed to his involvement in illegal activities to defraud the State exchequer.