SC Grants Anticipatory Bail Without Imposing Any Condition Of Depositing Revenue Loss

The Supreme Court bench comprising Justices Krishna Murari and Ahsanuddin Amanullah recently observed that the accused is entitled to be granted anticipatory bail without imposing any condition.

In the matter at hand, the anticipatory bail of the appellant was rejected by the Uttarakhand High Court in relation to summons issued by Deputy Commissioner State GST Dehradun under Section 70 of the Uttarakhand Goods and Services Tax/Central Goods and Services Tax Act, 2017. Hence the appellant approached the Apex court.

It was submitted on behalf on the appellant that since Section 132 (i) (iii) prescribes punishment for a term which may be extend to one year and the entire case is based on documentary evidence and other electronic evidence which are 2 available on record, thus the appellant is not required for any custodial interrogation.

Additional Solicitor General submitted that the appellant may be directed to deposit at least half of the revenue loss of Rs. 14.68 Crores to the state exchequer, by providing fake invoices to multiple forms which has been unearthed during investigation.

It was submitted on behalf of the appellant in reply submitted that there is no final assessment made under GST Act and unless such determination is made, the appellant cannot be said to be under a legal liability to make any payment much less deposit any amount as a condition for grant of anticipatory bail. 

The Supreme Court bench relied on the decision in Subhash Chauhan v. Union of India where the decision of the high court was set aside where the high court had imposed a condition to deposit while granting bail to the accused. The court noted that the same view was re-established by the court in the case Anatbhai Ashokbhai Shah v. State of Gujrat.

In the light of the aforementioned the court observed that the accused is entitled to be granted anticipatory bail without imposing any condition.