The Hon’ble Allahabad High Court in RAVINDER NATH SHARMA@ RAVUBDER SHARMA VERSUS UNION OF INDIA – 2023 (7) TMI 626 – ALLAHABAD HIGH COURT gave the bail to the taxpayer acknowledging certain conditions and carried that the arrest was made without no proper justifiable reasons and no GST recovery notice was issued.
Points:
Ravinder Nath Sharma (referred to as “the Applicant”) was taken into custody without any clear explanation, and no official notification had been issued to demand payment of GST (Goods and Services Tax) from him. This arrest is considered unlawful. Up until now, no fines or taxes have been determined according to the regulations outlined in the Central Goods and Services Tax Act of 2017 (referred to as “the CGST Act”). The Applicant has been held in detention since February 09, 2023.
The Revenue Department (referred to as “the Respondent”) argued that the accusations against the Applicant are of a severe nature. If the Applicant is granted bail and released, there is a concern that they might repeat similar actions and exploit the freedom granted by bail.
The Applicant argued that a negotiated settlement could resolve the alleged crimes.
The Applicant laid on the Judgement in SATENDER KUMAR ANTIL VERSUS CENTRAL BUREAU OF INVESTIGATION & ANR. – 2021 (10) TMI 1296 – SUPREME COURT in which the Hon’ble Supreme Court ruled that to date penalties or taxes have not been confirmed under the CGST Act the offences are compoundable in nature and triable by the Magistrate.
The Respondent argued that the approval of bail might be exploited, taking advantage of the freedom it provides.
The Applicant argued that due to the absence of any prior criminal record, they have no intention of misusing the liberty granted through bail.
The Applicant submitted a request for bail to the Hon’ble Meerut Session court, but this was turned down through an official ruling on May 26, 2023 (“the Order”).
Displeased with this order, the Applicant then submitted a bail application to the Hon’ble Allahabad High Court, seeking the approval of their bail application.
Problem:
Does the revenue department secure the right to arrest the applicant for not providing any cause or without furnishing the notice for the GST recovery?
Had:
The Hon’ble Allahabad High Court in RAVINDER NATH SHARMA@ RAVUBDER SHARMA VERSUS UNION OF INDIA – 2023 (7) TMI 626 – ALLAHABAD HIGH COURT ruled as under:
- Stated that the court must consider various factors when making a decision on bail, including the type of accusation, the quality of evidence, the defendant’s personal attributes, unique circumstances related to the defendant, their level of participation in the GST offence, their involvement in other cases, and the valid concern that witnesses might be influenced when determining whether to grant bail.
- Laid on the judgment in MAHIPAL VERSUS RAJESH KUMAR @ POLIA & ANR. – 2019 (12) TMI 1461 – SUPREME COURT in which the Hon’ble Supreme Court ruled that in the phase of assessing if the case would be appropriate for the grant of bail, the court does not need to proceed with an in-depth analysis of the proofs on the record to confirm above reasonable suspicion the implementation of the crime by the Accused.
- Determined that the arrest occurred without valid grounds, and no notice for the recovery of GST was issued under the subsequent circumstances:
- In order to prevent someone with knowledge of the case’s facts from exposing that information to the court or to a police officer or from tampering with the evidence, the applicant is not permitted to directly or indirectly offer any enticement, threat, or promise to such person.
- The Applicant is prohibited from exerting pressure or intimidation upon witnesses presented by the prosecution.
- The Applicant would be present, in person, to the trial court on the dates fixed for (i) opening of the case, (ii) framing of charge, and (iii) recording of statement under Section 313 of the CRPC.
- After being granted bail, the applicant is prohibited from engaging in criminal behaviour and is required to appear before the trial court on time for each scheduled day.
