For invoking the powers under Section 69 of the Act, mere suspicion is not enough. A person should not be arrested merely because the police has the power to arrest. The application is admitted to bail on his furnishing personal bonds
Section 132 of the CGST Act, 2017—Bail -- The applicants submitted application for seeking bail. He was arrested under Section 69(1) of the Act for the offence punishable under Section 132 on the ground that his firm had received invoices from M/s Dholagiri Enterprises without supply of goods involving ITC amounting to Rs.24.25 crores. The applicant submitted that he has already paid more than 10 per cent of the disputed tax liability; he is not required for custodial interrogation; complaint under Section 132 is yet to be filed; all the requisite documents have already been seized there are no chances of influencing the witnesses and tampering the documents; that the applicant is engaged in construction of Government projects which are time bound, therefore his prolonged custody would not only impact the execution of the contracts but also the livelihood of thousands of workers. The respondent submitted that the applicant has committed an offence by availing irregular ITC of more than Rs.5 crores from bogus firm The investigation is under progress. The court observed that the applicant is in custody since 9.1.2021 and, he has already paid 10 per cent of the disputed liability. The court relied the judgment of the Hon'ble Supreme Court in C.Pradeep Versus the Commissioner of GST and Central Excise Selam and another Special leave to appeal (Crl.) No.6834/2019.
Held that:-The Hon’ble High Court allowed the application and directed the applicant bail on his furnishing personal bonds in the sum of Rs.5 lacs with one surety in the like amount subject to certain conditions.