Section 132 of the CGST Act, 2017 —-Bail — The petitioner prayed for bail for the punishable under sections 132(1)(b), 132(1)(c) read with section 132(1)(i) and section 132(5) of the Act, 2017. It is alleged that two firms under the proprietorship of the applicant were found indulged in receiving and passing of fraudulent ITC to their buyers by way of creating a chain of bogus firms, without physical receipt and supply of goods. The applicant was arrested on 01.09.2021. A complaint was filed before the Court on 29.10.2021. The counsel for the applicant submitted that both the firms had taken ITC after making payment of goods and tax to its suppliers. The applicant without any SCN or any adjudication is declared to be the offender of evasions of GST to an extent of amount of Rs.14.89 crores. The necessary goods and documents were already seized and the statement of the applicant was also recorded by the authority; therefore, there is no question of tampering with evidence. There are no antecedents against the present applicant and as the offences are triable by the court of Judicial Magistrate, wherein the maximum punishment is upto 5 years and fine only. The court observed that the applicant was arrested on 01.09.2021 and complaint was filed on 29.10.2021. The statement of the applicant was also recorded. The shell companies details have been recorded. The Commissioner is empower to recover the due amount and propose for abating the proceedings and as the trial will take its own time to conclude, this Court finds this to be a fit case where discretion could be exercised in favour of the applicant.

Held that:- The Hon’ble High Court allowed the present application and ordered the applicant to be released on regular bail.