Sanjay Shende vs. Union Of INDIA

Held

The Court granted bail to the applicant, Sanjay Shende, under Section 439 of the CrPC. The decision was based on the consideration that the applicant has no criminal antecedent and has voluntarily deposited the remaining GST dues. The Court also noted that the applicant has been in custody since August 11, 2023. The reasoning for granting bail hinges on these mitigating factors, suggesting that further detention may not be necessary at this stage, especially given the potential delay in trial conclusion. The ratio decidendi is that a lack of criminal history, voluntary deposit of dues, and prolonged incarceration can be grounds for granting bail in cases involving alleged GST fraud, provided the court is satisfied with the overall circumstances. The operative directions include furnishing a personal bond with sureties and adherence to specific conditions regarding trial attendance and conduct, with the trial court empowered to take action for misuse of bail liberty.

Facts

The applicant, Sanjay Shende, was arrested in connection with Crime No. 5/GST/2023-24 registered with GST Intelligence, Raipur, for an offense under Section 132(1)(c) of the Central Goods & Services Tax Act, 2017. The prosecution alleges that the applicant ran M/s Ciplo Trading Company and took unauthorized Input Tax Credit (ITC) from suppliers without actual supply of goods. He is also alleged to be involved in the management of three other firms. Investigations revealed that ITC of Rs. 10,14,70,023/- was availed from firms whose GST registrations were suspended or cancelled. The applicant has been in jail since August 11, 2023.

Key Issues

1. Whether the applicant is entitled to be released on regular bail under Section 439 of the Code of Criminal Procedure, 1973, considering the facts and circumstances of the case and the provisions of Section 132(1)(c) of the Central Goods & Services Tax Act, 2017? Arguments for the Applicant: The applicant's counsel argued that the applicant has voluntarily deposited the remaining GST dues for which the FIR was lodged. It was further submitted that the applicant has no criminal antecedent and has been in custody since August 11, 2023, with the trial likely to take a considerable time. Therefore, bail was prayed for. Arguments for the Non-Applicant (Revenue): The counsel for the respondent endorsed the submissions made by the applicant's counsel.