Sanjay Prahladbhai Patel vs. State Of Gujarat

Facts

The applicant, Sanjay Prahladbhai Patel, proprietor of M/s Maharaja Spices and director of M.P. Commodities Pvt. Ltd., sought regular bail. The Assistant Sales Tax Commissioner, Flying Squad Unit 6, conducted a search and seizure procedure between April 29, 2019, and May 2, 2019. This led to a demand for tax liability amounting to Rs. 12,99,158/- for the period April 2018 to March 2019, which was paid on June 23, 2020. The applicant was arrested in connection with offences under Section 132(1)(i) of the Gujarat Goods and Services Tax, 2017, and Central Goods and Services Tax, 2017. The applicant had paid Rs. 1.5 crores towards tax liability.

Held

The Court allowed the application for regular bail. It considered that the petitioner had paid Rs. 1.5 crores towards the tax liability, which was an undisputed fact. The Court also noted that the punishment for the alleged offences is up to 5 years. Furthermore, the Court took into account that a coordinate bench had exercised discretion and granted bail in similar situations in Criminal Misc. Application No. 19224/2019 and Criminal Misc. Application No. 21179/2019. The Court applied the principles laid down by the Hon'ble Supreme Court regarding bail, focusing on the prima facie case, availability of the applicant at the time of trial, and the likelihood of tampering with witnesses. The applicant, Sanjay Prahladbhai Patel, was ordered to be released on bail upon executing a personal bond of Rs. 60,000/- with two local sureties of Rs. 30,000/- each, subject to several strict conditions, including not tampering with evidence, maintaining law and order, providing address proof, surrendering his passport, and marking his presence at the police station periodically.

Key Issues

1. Whether the applicant is entitled to regular bail under Section 439 of the Code of Criminal Procedure, considering the alleged tax liability, the amount paid, the applicant's role, and the potential punishment? The petitioner argued that Rs. 1.4 crores (later clarified as Rs. 1.5 crores) had already been paid towards the tax liability. They contended that the punishment is only up to 5 years, the applicant is innocent, has strong family roots, and is unlikely to abscond. They also highlighted the absence of direct involvement and prior antecedents. Reliance was placed on coordinate bench orders in Criminal Misc. Application No. 19224/2019 and Criminal Misc. Application No. 21179/2019, where bail was granted with conditions. The respondent State opposed the bail application, citing an alleged tax liability of Rs. 12,99,158/- and a total approximate tax liability of Rs. 5 crores against the applicant. They emphasized the nature and gravity of the offence and the applicant's involvement, suggesting strict conditions if bail were to be granted.