Kamlesh Suvalal Soni vs. State Of Gujarat

Held

The Court held that the applicant is entitled to regular bail. The reasoning was based on several factors: the maximum sentence for the alleged offences under Sections 132(1)(b) and 132(1)(c) of the CGST Act, 2017, is five years; the applicant had been in custody for approximately 55 days, and a complaint had not yet been filed; the respondent had not sought any remand from the Trial Court; and the investigation appeared to be almost over. The Court considered the nature of the alleged offences and the allegations in the FIR and decided to exercise its discretion to enlarge the applicant on bail. The applicant was ordered to be released on bail upon furnishing 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 for two months, cooperating with the investigation, furnishing his present address, and filing an undertaking regarding his immovable properties. The Court also noted 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 Kamlesh Suvalal Soni 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) for offences under Sections 132(1)(b) and 132(1)(c) of the Central Goods and Services Tax Act, 2017. The applicant's counsel stated that the applicant is willing to file an undertaking not to transfer or create third-party rights over his immovable properties until the GST amount, if any, levied against him is ascertained by the GST authorities. The State opposed the grant of bail. The Court noted that the applicant had been in custody for approximately 55 days, a complaint had not yet been filed, and the investigation appeared to be almost complete.

Key Issues

1. Whether the applicant is entitled to regular bail under Section 439 of the Code of Criminal Procedure, considering the nature and gravity of the offences under Sections 132(1)(b) and 132(1)(c) of the Central Goods and Services Tax Act, 2017? Petitioner's Argument: The petitioner argued that they are ready to file an undertaking not to transfer or alienate their immovable properties and to provide details of these properties to the DGGI until the GST amount is ascertained. They contended that considering the nature of the offence, the applicant should be enlarged on bail with suitable conditions. Respondent's (State of Gujarat and DGGI) Argument: The learned APP and learned Standing Counsel for the respondent opposed the grant of bail, citing the nature and gravity of the offences alleged.