This Court is inclined to grant bail to the petitioner.
Section 132 of the CGST Act, 2017 – Bail – The petitioner sought bail for the offence punishable u/s 132 (1) (d) of the Act. He was remanded to judicial custody on 4.2.2021. The petitioner is an Executive Director of company, which is engaged in the supply of White Duplex Board. The allegations against them are that they were making outward supplies without paying the taxes. Inspite of issue of summons, the petitioner did not respond. The counsel for the petitioner submitted that the company had been submitting periodical returns and in response to the summons, all the accounts were also produced by the company. A sum of Rs. 5 Crores had been paid by way of input tax, which was not taken into account by the respondent and that the amount of outward tax due, shown by the respondent is hypothetical. The business of the company was taken over by the financial institutions under the SARFAESI Act in the year 2018, due to the huge losses sustained and that the company is taking steps for reviving the company. The petitioner is willing to give immovable property as security and to that effect, submitted that he would also filed an affidavit. The court observed that an undertaking affidavit has been filed by the petitioner dated 22.07.2021 in which the petitioner has submitted that the security given to the bank for the loans and LC availed to the tune of about Rs. 75 Crores, security of property and machineries of the petitioner to the tune of about Rs. 200 crores has been given.
Held that:- The Hon’ble High Court allowed petition and granted bail to the petitioner subject to certain conditions.
This Court is inclined to grant bail to the petitioner.
Section 132 of the CGST Act, 2017 – Bail – The petitioner sought bail for the offence punishable u/s 132 (1) (d) of the Act. He was remanded to judicial custody on 4.2.2021. The petitioner is an Executive Director of company, which is engaged in the supply of White Duplex Board. The allegations against them are that they were making outward supplies without paying the taxes. Inspite of issue of summons, the petitioner did not respond. The counsel for the petitioner submitted that the company had been submitting periodical returns and in response to the summons, all the accounts were also produced by the company. A sum of Rs. 5 Crores had been paid by way of input tax, which was not taken into account by the respondent and that the amount of outward tax due, shown by the respondent is hypothetical. The business of the company was taken over by the financial institutions under the SARFAESI Act in the year 2018, due to the huge losses sustained and that the company is taking steps for reviving the company. The petitioner is willing to give immovable property as security and to that effect, submitted that he would also filed an affidavit. The court observed that an undertaking affidavit has been filed by the petitioner dated 22.07.2021 in which the petitioner has submitted that the security given to the bank for the loans and LC availed to the tune of about Rs. 75 Crores, security of property and machineries of the petitioner to the tune of about Rs. 200 crores has been given.
Held that:- The Hon’ble High Court allowed petition and granted bail to the petitioner subject to certain conditions.