Section 132 of the CGST Act, 2017 —-Bail — The applicant has prayed for regular bail in connection with the offences punishable under Section 132(1)(c) of the Act. It is alleged that the applicant’s firm generated false / fabricated documents for availing illegal ITC. The applicant’s counsel submitted that all the transaction entered into by the applicant were genuine transactions and that the applicant has all necessary documents in his possession. Further, for the alleged evasion of Rs.41 Crores of ITC, the Department had attached immovable properties of the applicant worth Rs. 57 Crores. The maximum sentence for the offence in question is five years and the offence is compoundable in view of the provisions of section 138 of the Act. The applicant was arrested in November 2021 and he has cooperated with the investigation all throughout. The applicant is reported to be suffering from Prostrate Cancer and is, presently, hospitalized. The court observed that it is alleged that the applicant firm have fraudulently claimed ITC to the tune of Rs.31.02 Crores by showing fake purchases from 24 fictitious entities. The respondent-Department has already attached immovable property belonging to the applicant in excess of the amount of alleged evasion. If that be so, then the interest of the respondent Department is already protected. Under sub-section (1) of section 138, any offence under the Act may, either before or after the institution of prosecution, be compounded by the Commissioner on payment by the person accused of the offence to the Central Government or the State Government. No other complaint under the Act has been registered against the applicant. The applicant is reported to be suffering from Prostrate Cancer and is presently, undergoing treatment at Nadiad in pursuance of the order dated 05.01.2022 passed by this Court. The Court is inclined to grant regular bail to the applicant.

Held that:- The Hon’ble High Court allowed the bail application and granted bail subject to certain conditions.