Bail Application — Section 132 of the CGST Act, 2017— The petitioner sought bail in the case under section 132(1)(a)(i) of the Act. The applicants were arrested by the respondent officers on 08.07.2020 on the alleged evasion of GST by the Company on account of production and sale of sanitizers. The petitioners claimed that they are not the Directors/ Managers/Officers/employees or authorized representatives of the company as such, they are not responsible for the day-to-day business affairs of the Company. The petitioners had resigned their Directorship on 01-4-2009, i.e. nearly 11 years ago. Initially the respondent authorities had communicated demand of GST liability of Rs.7,96,00,000/- and to demonstrate its bona fide, the company deposited Rs.8 crores under protest. Thereafter, the department has increased the liability to Rs.33 crores as an afterthought. The Court observed that for existence of “reasons to believe” they do not perceived any material, except the statement of the employee. There is no documentary material produced on record to show that the present applicants were legally in charge and responsible for the day-to-day working of the Company. Merely on a bald statement of an employee of the Company, it cannot be held that the present applicants were in charge and responsible for the functions of the Company.
Held that:- The Hon’ble High Court allowed the petition and directed the applicants be released from custody on their furnishing a personal bond in the sum of Rs.5,00,000/- each, with separate sureties of the like sum to the satisfaction of the trial Court, for their appearance before it, as and when required, further subject to certain conditions.—Jagdish Arora And Another Vs. Union of India, Through Senior Intelligence Officer, GST Intelligence, Bhopal [2020] 27 TAXLOK.COM 030 (MP)