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April 2022

GOODS AND SERVICES TAX (GST)

By Puloma Dalal | Jayesh Gogri |
Mandar Telang Chartered Accountants
Reading Time 16 mins

I. SUPREME COURT

1 Paresh Nathalal Chauhan vs. State of Gujarat [2022 (57) GSTL 353 (SC)] Date of order: 1st February, 2022 Bail cannot be denied where accused was already in custody for 25 months which was almost 50% of the period for which he could have been sentenced FACTS Appellant was taken into custody for indulging in evasion of GST. A search operation was conducted by the officers, who had occupied the house for over a week, where female members were also present. This was adversely commented by the Hon. Gujarat High Court in its judgement dated 24th December, 2019. The appellant had been in custody for over 25 months out of a total period of 5 years for which he can be sentenced. The investigation was still pending even though the complaint was filed. The endeavour of officers was only to teach a lesson to the appellant, which had resulted in adverse order against him. Counter argument by Respondent was that appellant should not be enlarged on bail as he was a habitual offender who has been engaged in violation of law previously as well. The root problem of evasion of duty of Rs.64 crores can be detected only if the accused is taken into custody. Being aggrieved, the appeal was filed for grant of bail. HELD It was held that the appellant could not be detained indefinitely where he had already been under custody for approximately 25 months which is almost half of the maximum total sentence of 5 years.

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