Kerala High Court: Anticipatory Bail Granted in Case of Non-GST Payment

In a major relief, The Kerala High Court has granted anticipatory bail to the person who is accused (indirectly) of non-payment of Goods and Services Tax to the amount of Rs 17.53 crores along with non-filing of GSTR 3B returns for the period from October 2020 onwards. The applicant, Abdul Shaji, is apprehending his arrest for the aforesaid arrest. Earlier, Rajoob PA and his primary colluder, Abdul Saleem were arrested.

Rajoob PA is the proprietor of M/s A.R. Agencies, Eyyal Thrissur. And Applicant (Abdul Shahji) conducts business at ‘PSM Supermarket’ at Karukaputhur in Palakkad District. Abdul Saleem (colluder of Rajoob PA) hails from Ittonam, Palakkad

Initially proceeding were initiated (by Anti Evasion Unit of Cochin Commissionerate) against Rajoob PA and his primary colluder Abdul Saleem of Ittonam, Palakkad wherein business and residential premises of both the people were searched and thereafter both of them were arrested and sent to Judicial custody.

When questioned during custody, Abdul Saleem (colluder of Rajnoob PA) put forth the statement that he had co-shared the GST login credentials of M/s AR Agencies(Proprietor of M/s AR Agencies is Rajoob PA) with the applicant Abdul Shaji. Abdul Saleem further stated that he had filed GSTR-1 returns for AR Agencies. It was further contended that the applicant (Abdul Shahji) had made GST invoices worth Rs 348.7 crores by using the credentials of the M/s AR Agencies

Consequently, a search operation at the applicant’s residence was also conducted. And A number of blank cheques and other documents (incriminating) were also recovered from the applicant’s house. Additionally, it is stated that at the time of search operation, the applicant’s father was present but applicant Abdul Shahji was not present at the aforesaid time.

After search operations at the house of the applicant (Abdul Shahji), a summon was also sent to the applicant’s house as per section 70 of the Centre GST Act. This summon directed the applicant to appear before the Superintendent of the Central Tax and Central Excise along with the relevant documents.

The applicant(Abdul Shahji) stated in his application that he is not occupied in any business at present time and has no GST registration. And when Abdul Saleem (Colluder) came to his wife’s supermarket (which is a partnership firm), the colluder had helped the applicant in procuring stocks from his uncle’s shop at Vadakkencherry. Apart from that, he has no association with him.

Finally, the Coram of Justice Ashok Menon commented that this is a settled position that the applicant who is apprehending arrest should not be made an accused in the entire aforesaid crime and is eligible for anticipatory bail. The fact that he had succeeded in establishing his apprehension of arrest is, no doubt, reasonable ground to provide him anticipatory bail. Further, the court gave directions to the applicant to appear before the concerned investigating officer within three weeks. He was further directed to cooperate fully with the investigation agencies and should produce all documents before the investigating authorities.

Thereafter (After interrogation), in the event of the applicant’s arrest, he shall be released on a bail bond for Rs 5,00,000/- along with two sureties for like sum and that too to the satisfaction of the concerned arresting officer. The applicant shall further refrain from tampering with witnesses or evidence.