Ramachandran vs. The Deputy Superintendent Of Police

Facts

The petitioner, Ramachandran, arrayed as Accused No. 8, sought bail in connection with Crime No. RC 229 2021 A 0001, registered for offences under sections 120(b), 420 of IPC and sections 13(2), 13(1)(d) of the Prevention of Corruption Act, 1988. The petitioner, a primary school teacher, was arrested on February 24, 2023. The prosecution alleged that he, despite being a government teacher, registered as a Tax Return Preparer and GST Practitioner, which is against conduct rules. He allegedly filed returns for private individuals and state government agencies for personal earnings. Bank transactions in his Axis Bank and State Bank of India accounts over five years showed approximately Rs. 80 lakhs and Rs. 40 lakhs respectively, apart from his salary. The petitioner claimed he was implicated as the brother of the first accused and that only Rs. 4 lakhs was transferred from the first accused's account to his. His account has since been frozen.

Held

The Court granted bail to the petitioner, Ramachandran (Accused No. 8), considering the submissions made by both counsels and the period of incarceration. The Court found it inclined to grant bail. The reasoning for granting bail was primarily based on the petitioner's status as a primary school teacher, his alleged limited involvement (being the brother of the first accused and a sum of Rs. 4 lakhs transferred), and the fact that the first accused had already been released on bail. The Court did not delve into a detailed analysis of the GST or tax-related provisions but focused on the bail application's merits. The operative directions included the petitioner executing a bail bond of Rs. 10,000/- with two sureties, reporting to the respondent police daily, not committing similar offences, not absconding, and not tampering with evidence. The Court also referenced the Supreme Court's decision in P.K. Shaji vs. State of Kerala regarding breach of bail conditions. No specific GST or tax provisions were discussed in detail to form the ratio decidendi for a tax dispute, as this was a bail application.

Key Issues

1. Whether the petitioner, arrayed as Accused No. 8, is entitled to bail considering the allegations of him acting as a Tax Return Preparer and GST Practitioner while being a government teacher, and the substantial bank transactions found in his accounts, as per Section 439 of the Code of Criminal Procedure, 1973. Petitioner's arguments: The petitioner contended that he is merely Accused No. 8 and implicated as the brother of the first accused. He argued that the allegation of Rs. 4 lakhs being transferred to his account is the extent of his involvement and that he is a primary school teacher and an award winner with no connection to the alleged crime. He also highlighted his period of incarceration. Respondent's (CBI) arguments: The respondent submitted that the petitioner, as Accused No. 8 and brother of the first accused, obtained digital signatory permission from the IT Department, underwent training from NIT, and continued to practice as a tax preparer and GST practitioner even after recruitment as a teacher. The further allegation is that the petitioner, along with other accused, claimed tax benefits from other PAN holders. The respondent also noted that the first accused was released on bail and the crime is of 2021.