Section 132 of the CGST Act — Bail Application – The petitioners prayed for prearrest bail for the offence committed in terms of Section 132(1)(b) and (c) read with Section 132(5) of the Act, 2017. The Applicants are partners and engaged in the business of trading. Applicant no.1 is husband of applicant no.2. Applicant no.1 claimed that applicant no.2 (his wife) being dormant partner, does not participate in the business of the firm at all. The respondent alleged that applicants are guilty of claiming ITC on the materials never purchased and passing on such Credit to companies to whom they never sold any goods. Thus the applicant contravened Section 132(1)(b) and (c) and Section 132(5).
Held that:- The Hon’ble High Court rejected prearrest bail of the applicant No.1 and held that since applicant no.2 is wife of applicant no.1 and is a dormant and sleeping partner, therefore, granted prearrest bail to her.—Ashok Kumar s/o. Chandrapal Singh Vs. Commissioner CGST & Central Excise, Navi Mumbai Commissionerate And anr  27 TAXLOK.COM 032 (Bombay)