Kishore Wadhwani vs. Union Of INDIA Thr. Department Of Revenue Inteligence And Directorate General Of Goods And Service T

Held

The Court allowed the bail application, directing the release of the petitioner, Kishore Wadhwani, upon furnishing a personal bond of Rs. 10,00,000/- with one solvent surety. The Court stated that while it had heard the arguments at length and perused the record, an elaborate discussion of the evidence, which is confidential, would not be appropriate as it might adversely affect either party's case. However, upon careful consideration of the evidence on record, the Court was of the considered opinion that it would be appropriate to allow the petition. The Court explicitly stated that it was passing this order without commenting on the merits of the case. The petitioner was also subjected to standard bail conditions, including cooperation with the trial, not tampering with witnesses, not committing further offenses, and submitting his passport.

Facts

This is a bail application (M.Cr.C. No.26653 of 2020) filed under Section 439 of the Cr.P.C. by Kishore Wadhwani. The petitioner was arrested in connection with Crime No. 23/2020, registered under Section 132(1)(a)(i) of the Goods and Services Tax Act (GST Act) and Sections 409, 467, 471, 120-B of the IPC. The Directorate General of Goods and Services Tax Intelligence (DGGI) is the investigating authority. The petitioner's tenant allegedly evaded GST by clandestine sale of Pan Masala. The petitioner claims he is merely the landlord and has no involvement with his tenant's business. The prosecution contends the petitioner is the director of a media company, 'Dabang Dunia', whose stickers were found on vehicles involved in clandestine Pan Masala transportation, and that statements under Section 70 of the GST Act implicate him as the 'kingpin' of various businesses involved in tax evasion amounting to crores of rupees. The petitioner counters that these statements were retracted and involuntarily recorded under duress, and no supporting evidence was found.

Key Issues

1. Whether the petitioner, Kishore Wadhwani, is entitled to bail under Section 439 of the Cr.P.C. given the allegations of tax evasion under Section 132(1)(a)(i) of the GST Act and related IPC offenses? Petitioner's arguments: The petitioner contends that he is merely the landlord of the premises used by his tenant, who is allegedly involved in tax evasion. He asserts no documents show his involvement and that statements recorded under Section 70 of the GST Act were involuntary, retracted, and lack corroborating evidence. He also argues that the charge sheet was not filed within the stipulated 60 days, entitling him to default bail under Section 167 of the Cr.P.C. Revenue/State's arguments: The respondent (Union of India) argues that the petitioner, as a director of 'Dabang Dunia', is involved because its stickers were found on vehicles used for clandestine transportation of Pan Masala. They rely on statements recorded under Section 70 of the GST Act, which allegedly identify the petitioner as the 'kingpin' of multiple businesses involved in tax evasion worth crores. The respondent also points to an FIR lodged against persons who allegedly assaulted DGGI officials during a search at the petitioner's house, suggesting non-cooperation and a risk of tampering with evidence. They cite Supreme Court judgments emphasizing the seriousness of economic offenses.