Section 132 of the CGST Act, 2017 —Bail –--The petitioners have filed bail application under Section 439 of the CrPC for grant of regular bail. It is alleged that the tax payer was found involved in evasion of tax by way of getting registration by means of wilful mis-statement and suppression of facts and found to be fraudulently involved in wrong availment and utilization of ITC. The counsels of the petitioners contended that the petitioner would be liable for punishment for fraudulently availing ITC of Rs.3,32,17,761/-. This would amount to commission of a bailable offence in terms of Section 132(5). Till date no demand has been determined either under Section 73 and/ or 74 of the Act. The petitioner is in custody since 13.03.2021 and pre-charge evidence was still going on. As many as 66 witnesses were to be examined. He had already undergone almost 1/3rd of his sentence if he were to be convicted. The court observed that as on date they have undergone a total custody period of approximately 01 year and 06 months. The maximum sentence that could be awarded would be 05 years. As yet, even the charges have not been framed and as many as 66 prosecution witnesses are yet to be examined. Further no serious apprehension has been expressed by the prosecution of the petitioners being flight risks, or that they would tamper with the evidence or influence witnesses in case bail was granted to them.

Held that:- The Hon’ble High Court allowed the bail application subject to certain conditions.