Prateek Kalbalia vs. Directorate General Of GST Intelligence, Jamshedpur Regional Unit

Facts

The petitioner, Prateek Kalbalia, is an accused in Complaint Case No. 4128 of 2025, registered for offences under sections 132(1)(b), 132(1)(c), and 132(5) of the Central Goods and Service Tax Act, 2017. The case is pending before the Special Judge, Economic Offences, Jamshedpur. The petitioner is alleged to have evaded GST amounting to Rs. 44.00 crore across various financial years. A prosecution report has been submitted in the case. The petitioner has been in custody for over two months and seeks bail.

Held

The Court found merit in the petitioner's plea for bail. It was noted that the prosecution report had been submitted and the petitioner had been in custody for over two months. The Court considered the maximum punishment prescribed for the offences under Section 132 of the CGST Act, 2017. Citing the Supreme Court's decision in Ratnambar Kaushik v. Union of India, where bail was granted post-submission of the prosecution report, the Court was inclined to enlarge the petitioner on bail. The petitioner was directed to be released on furnishing bail bonds of Rs. 20,000/- with two sureties of the like amount to the satisfaction of the Special Judge, Economic Offences, Jamshedpur.

Key Issues

1. Whether the petitioner is entitled to be released on bail, considering the submission of the prosecution report and the period of custody already undergone, under Section 132(1)(b), 132(1)(c), and 132(5) of the Central Goods and Service Tax Act, 2017? The petitioner argued that the prosecution report has been filed and the maximum punishment for the alleged offences is five years. He has already spent more than two months in custody. Reliance was placed on the Supreme Court's decision in Ratnambar Kaushik v. Union of India, where bail was granted after the submission of the prosecution report. The Directorate General of GST Intelligence opposed the prayer for bail.