Bail Application —Section 132 of the CGST Act, 2017— The petitioner filed petition for grant of anticipatory bail for the offences punishable under section 132(1)(i) read with section 132(1)(b)(c) of Act. After the search proceedings, the petitioner was arrested and after thorough investigation, he was granted regular bail by the Court concerned. During investigation, it revealed that the petitioner is instrumental in establishing number of companies appointing his close relatives as Managing Directors, only for name sake and that he has got absolute control over the company's affairs and that he is responsible for evading payment of ITC. The petitioner submitted that he is no way connected. The respondent contended that the petitioner is responsible for tax evasion to an extent of Rs. 36 crores.
Held that:- The Hon’ble High Court allowed the petition and held that the petitioner is not directly or indirectly liable for, the taxes imposed by the Government and there is no record to substantiate the prima facie involvement of the petitioner in the subject case. He has been arrested and detained for about 30 days in judicial custody. Directed the respondents to release the petitioner on bail in the event of his arrest, on execution of a personal bond for a sum of Rs. 10,00,000/- with two sureties in a like sum each to the satisfaction of the respondent.— G. Eswara Rao Vs Directorate General of Goods And Service Tax [2019] 10 TAXLOK.COM 136 (Telangana)