Uttam Rajmal Shah vs. State Of Gujarat

Held

The Court held that the applicant is entitled to be enlarged on bail. The Court considered the alleged offences under Sections 132(1)(b) and 132(1)(c) of the Central Goods and Services Tax Act, 2017, for which the maximum sentence is five years. It noted that the applicant had been arrested on July 21, 2019, and approximately 55 days had passed without the complaint being filed. Furthermore, the respondent had not requested any remand from the Trial Court, indicating that the investigation was nearing completion. The Court found it to be a fit case to exercise its discretion to enlarge the applicant on bail. The applicant was ordered to be released on bail upon executing a bond of Rs. 50,000/- with two sureties of Rs. 25,000/- each, subject to several conditions, including not misusing liberty, not acting prejudicially to the prosecution, surrendering his passport, not leaving Gujarat without permission, marking presence with the DGGI, cooperating with the investigation, and furnishing an undertaking regarding his immovable properties as offered. The Court also directed that the trial court should not be influenced by these preliminary observations.

Facts

This is an application filed under Section 439 of the Code of Criminal Procedure by Uttam Rajmal Shah seeking regular bail. The applicant was arrested on July 21, 2019, in connection with File No. DGGI/AZU/GR.D/12(4)-30/2019-20, registered with the Directorate General of GST Intelligence (DGGI), Zonal Unit, Ahmedabad. The offences alleged are under Sections 132(1)(b) and 132(1)(c) of the Central Goods and Services Tax Act, 2017. The applicant's counsel, on instructions, offered an undertaking that the applicant would not transfer or create third-party rights over his immovable properties and would provide details of these properties to the DGGI until the GST amount, if any, is ascertained. The State opposed the bail application, citing the nature and gravity of the offences.

Key Issues

1. Whether the applicant is entitled to regular bail under Section 439 of the Code of Criminal Procedure, considering the alleged offences under Sections 132(1)(b) and 132(1)(c) of the Central Goods and Services Tax Act, 2017? Petitioner's arguments: The applicant is ready to file an undertaking not to transfer or alienate his immovable properties and to supply their details to the DGGI until the GST amount is ascertained. The applicant is willing to furnish an undertaking to this effect and may be enlarged on bail with suitable conditions, considering the nature of the offence. The applicant also pointed out that 55 days had passed since his arrest, the complaint had not yet been filed, and the respondent had not requested further remand, suggesting the investigation was almost complete. Revenue's arguments: The learned APP and learned Standing Counsel for the respondent opposed the grant of bail, looking to the nature and gravity of the offences.