Ramprasad vs. The State Of Madhya Pradesh

Held

The Court found force in the contentions raised by the applicant's counsel. It noted that the Division Bench of the High Court, in WP No. 21614/2024 dated 11/09/2024, had held that the prosecution cannot bypass the special provisions of Section 132 of the GST Act, 2017, and lodge an FIR for offences registered under the IPC when the alleged fraud pertains to obtaining tax benefits. Although this order was under challenge before the Supreme Court, it was admitted that there was no stay granted by the Supreme Court. Furthermore, the Court took into consideration that other accused persons in identically placed situations had already been granted bail by this Court. Given that the applicant had been in jail since December 26, 2022, and the trial was likely to take a considerable amount of time, the Court concluded that the applicant's bail application deserved to be allowed. The Court directed the applicant's release on bail upon furnishing a personal bond and surety, subject to conditions under Section 437(3) of the CrPC.

Facts

This is a bail application filed by Ramprasad under Section 483 of BNSS, 2023 / 439 of CrPC. The applicant is implicated in Crime No. 62/2022 registered at Police Station STF, Bhopal Unit, Indore, for offences under Sections 420, 467, 468, 471, 120-B, and 201 of the IPC. The allegation is of fraud to obtain tax benefits. The applicant has been in jail since December 26, 2022. The applicant's counsel argued that prosecution cannot bypass Section 132 of the GST Act, 2017, and lodge FIRs for IPC offences. Bail had been granted to other identically placed accused persons. The State opposed bail, citing the rejection of a co-accused's bail by the Supreme Court. The applicant's counsel highlighted that a Division Bench order supporting their contention was passed subsequently and was not stayed by the Supreme Court.

Key Issues

1. Whether the prosecution can bypass the special provisions of Section 132 of the GST Act, 2017, and lodge an FIR for offences registered under the Indian Penal Code, 1860, when the alleged fraud pertains to obtaining tax benefits? (Question of law) Petitioner's Arguments: - The prosecution cannot bypass the special provisions of Section 132 of the GST Act, 2017, and lodge an FIR for IPC offences. (Relied on Division Bench order in WP No. 21614/2024 dated 11/09/2024). - Other identically placed accused persons have been granted bail by this Court in M.Cr.C. No. 33801/2024 and 54522/2024 vide order dated 16/07/2025. - The applicant is on a better footing than those granted bail. - The applicant has been in jail since 26/12/2022, and the trial is likely to take a long time. - The Division Bench order, though under challenge before the Supreme Court, has not been stayed. Revenue/State's Arguments: - No case for grant of bail is made out. - The bail application of co-accused Ajay Parmar was rejected by the Supreme Court in SLP(Crl.) No. 8868/2024 dated 02/09/2024.