'Accused Are Ladies, Incarcerated For 8 Months': Punjab & Haryana High Court Grants Bail To Three Allegedly Involved In ₹31 Crore GST Fraud

The bench comprising Justice Gurvinder Singh Gill observed,

"Without commenting anything as regards the merits of the case but while keeping in view that all the three petitioners are ladies and have been behind bars for a substantial period of about 8 months whereas the maximum sentence as may be imposed is 5 years, further detention of the petitioners will not be justified."

The Petitioners had sought regular bail in proceedings initiated by Superintendent CGST, Commissionerate Ludhiana u/s 132 of the Central Goods and Services Tax Act, 2017 read with Section 20 of the Integrated Goods and Services Tax Act, 2017.

The case came up as a result of allegations against the accused that during the course of the investigation it was found that Shri Sunil Kumar son of Shri Sobha Ram is running a network of bogus firms in his own name or in the name of his family members, employees, and their family members including the petitioners. He has created and operated these bogus firms for availing inadmissible input tax credit (ITC) on the strength of fake invoices and also for passing on fraudulent ITC to buyers on the strength of invoices that were not accompanied by any goods.

The counsel for the petitioners submitted that the petitioners were unaware as to what was being done on their behalf and their signatures were obtained on small allurements. Adding further there is nothing on record to show that the petitioners personally benefited from the amounts alleged. The maximum sentence that can be imposed under Section 132 of the Act is 5 years, the petitioners, who have already undergone about 8 months, deserve the concession of regular bail. Section 439 Cr.P.C. also recognizes that a lenient view may be taken in the matter of grant of bail to the ladies and infirm persons.

The same was opposed by the learned counsel for the respondent by submitting that it is a case involving a colossal amount of Rs. 31,48,04,523/- that has been siphoned off from the State exchequer and it is done by all the accused in connivance with each other.

After considering rival submissions by the parties, the court held that without commenting anything on the merits of the case and considering that all the three petitioners are ladies and have been behind bars for about 8 months whereas the maximum sentence that can be imposed is 5 years, further detention will not be justified.

It therefore ordered the petitioners to be released on regular bail by furnishing bail bonds/surety bonds.

Case Title : Asha and others v. State of Punjab and another

Citation: 2022 LiveLaw (PH) 72

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