Facts of the Case

The present matter consisted of seven connected regular bail petitions arising from FIR No. 8 dated 21.08.2020, registered by the Vigilance Bureau, Phase-I, SAS Nagar, Mohali. The FIR alleged a large-scale Goods and Services Tax (GST) evasion racket operating in the State of Punjab.

According to the prosecution, intelligence inputs indicated that officials of the GST Department, traders, transporters and intermediaries were involved in a conspiracy whereby monthly bribes were allegedly paid to public officials. It was alleged that inter-State and intra-State transactions were conducted without proper accounting or payment of GST, resulting in wrongful availment of bogus Input Tax Credit (ITC). The investigation was initiated after lawful interception of mobile phones of certain accused persons.

The petitioners were arrested during August and September 2022 and sought regular bail before the High Court.

 

Issues Involved

  1. Whether the petitioners were entitled to regular bail after completion of investigation.
  2. Whether continued judicial custody was justified when the charge-sheet had already been filed.
  3. Whether the delay in trial due to pending prosecution sanction against GST officials justified grant of bail.
  4. Whether parity with co-accused who had already been granted bail should be extended to the petitioners.

 

Petitioners' Arguments

The petitioners submitted that:

  • They had remained in custody for a considerable period.
  • Investigation against them had already been completed.
  • The challan had been presented before the competent court.
  • Their names surfaced primarily during interrogation of co-accused.
  • Trial was unlikely to conclude within a reasonable time because prosecution sanction against the departmental officials had not yet been granted.
  • Similarly placed co-accused had already been granted regular bail by the High Court and the principle of parity entitled the petitioners to similar relief.

 

Respondent's Arguments

The State opposed the grant of bail.

However, the State fairly acknowledged that:

  • Investigation against the petitioners had been completed.
  • The charge-sheet had already been filed.
  • Sanction for prosecution of the concerned departmental officials was still awaited.

 

Court Order / Findings

The Punjab & Haryana High Court granted regular bail to all the petitioners.

The Court observed that:

  • Investigation against the petitioners stood completed.
  • The challan had already been filed.
  • Co-accused had previously been granted bail.
  • The trial was likely to take considerable time since prosecution sanction against departmental officials was still pending.

Considering these circumstances, and without expressing any opinion on the merits of the allegations, the Court held that the petitioners deserved the concession of regular bail subject to furnishing appropriate bail bonds before the concerned Chief Judicial Magistrate/Duty Magistrate.

 

Important Clarification

The High Court specifically clarified that:

  • The observations contained in the bail order shall not be treated as an expression on the merits of the prosecution case.
  • The order is confined only to consideration of the bail applications.
  • All pending miscellaneous applications were disposed of as infructuous upon disposal of the main petitions.

Sections Involved

Prevention of Corruption Act, 1988

  • Section 7
  • Section 7A
  • Section 8

Indian Penal Code, 1860

  • Section 420
  • Section 465
  • Section 467
  • Section 468
  • Section 471
  • Section 201
  • Section 120-B

 Link to Download the Order-https://www.mytaxexpert.co.in/uploads/1783931783_192compressed.pdf

 

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