Bail Application — Section 132 of the CGST Act, 2017—The petitioners filed bail application for the offence under section 132(1)(a)(i) of the Act. The respondent submitted that the petitioner indulged in clandestine clearance of Pan Masala without payment of GST. During this search 10 vehicles, unaccounted Pan Masala, its packing material and some raw material was seized. The petitioners were partners of the firm and have confessed in their statements that their firm had supplied Pan Masala. The petitioner submitted that their raw material is purchased from the undertakings/ companies of the government or from the societies run by the government; therefore, clandestine purchase is not possible. Therefore, there has never been any scope to evade the tax. Further, the petitioners have never confessed anything and their statements were recorded under threat and pressure. They retracted them immediately after coming out of the fear. The petitioner submitted that due to COVID-19 pandemic and complete lockdown, there was some delay in paper work and submission of the invoices etc. Nil electricity consumption establishes the fact of closure of the factory during this period. Therefore, the allegation of evasion of tax is false. The petitioners are in custody since 11.06.2020 and are in jail since 13.06.2020. Their custodial interrogation is not required. The nature of evidence is documentary and all documents are in custody of the Department
Held that:- The Hon’ble High Court allowed the writ petitions and granted bail on their furnishing a personal bond in the sum of Rs. 5,00,000/- each with separate sureties and further imposed some conditions.—Amit Bothra, Ashok Dagar Vs. State of MP [2020] 26 TAXLOK.COM 064 (MP)