Section 132 of the CGST Act, 2017 – Bail –-- The applicant department preferred the application for cancellation of bail granted to the respondent Court order dt. 25/09/2020 for the offence punishable under Section 132(1)(b) and (c) of the Act. The applicant sought cancellation of bail on the ground that Ld. Trial Court did not give reasons whilst granting bail. Merits and demerits of the case were not discussed in bail order. The Advocate for the applicant submitted that during the course of inquiry respondent came to be arrested on 05/09/2020. During custody, bail application was preferred and the Respondent had orally offered that he would file an application for compounding the offence and was ready to pay the amount. The Ld. Magistrate has no authority in law to entertain any such application for compounding. The court observed that compounding of the offences can be allowed only after making payment of tax, interest and penalty. Ld. Trial Court oversighted the provision and erred to hold that accused shall deposit some amount for compounding to show his bonafide. Ld. Trial Court overlooked provisions under Sec. 138(2) of the Act.

Held that:- The Hon’ble Court set aside the impugned order dt. 25/09/2020 and directed that the accused shall immediately surrender before the Trial Court within two weeks. Ld. Trial Court is directed to hear the fresh bail application filed by accused and decide at the earliest by considering the merits afresh.