GST - Appellant cannot be indefinitely detained in custody moreso having already undergone a period of 25 months of custody and which is almost 50% of the sentence - Bail granted: SC

2022-TIOL-09-SC-GST

Paresh Nathalal Chauhan Vs State of Gujarat

GST - Search party staying back at the residence of the petitioner; confining family members of the petitioner to the house and interrogating them time and again - High Court comes down heavily on the respondent department - 2020-TIOL-155-HC-AHM-GST - Principal allegation against the petitioner is of his having obtained the tax credit to an extent of about Rs. 60 Crores through fictitious firms allegedly established by him in connivance with other persons - Bail application dismissed by High Court - 2020-TIOL-913-HC-AHM-GST - Appeal before Supreme Court - Appellant submits that he has been in custody for 25 months out of a total period of five years for which he can be sentenced; that the endeavour of the officers is only to teach him a lesson for having initiated proceedings which resulted in adverse orders against them;  that the investigation is still stated to be pending - ASG defends the order and states that the appellant should not be enlarged on bail as he is a habitual offender who has earlier also been engaged in violation of the law as per the earlier provisions; that a number of accused are absconding and only on their being taken into custody would the root of the problem be detected.

Held: Appellant cannot be indefinitely detained in custody moreso having already undergone a period of 25 months of custody when he can be sent behind bars for a maximum of five years - It is almost 50% of the sentence - Stand of the respondent was also coloured by the proceedings taken out by the appellant/family members qua the conduct of the officers which  have visited them - Bench is inclined to grant bail to the appellant on the terms and conditions to the satisfaction of the Trial court - Appellant must be careful not to indulge in any such activities in the future - Criminal appeals stand allowed: Supreme Court

- Appeals allowed: SUPREME COURT OF INDIA