Facts of the Case

The petitioner, Hitender, filed a petition before the Punjab & Haryana High Court seeking regular bail in connection with FIR No. 245 dated 24.05.2022 registered at Police Station City Bahadurgarh, District Jhajjar. The FIR alleged offences under Sections 120-B, 420, 467, 468 and 471 of the Indian Penal Code, and during investigation, offences under Section 201 IPC and Section 132 of the Central Goods and Services Tax Act, 2017 were also added.

The prosecution alleged that the petitioner, being the proprietor of Chaudhary Metals, was involved in preparing fake invoices through bogus GST firms. During the hearing, the State informed the Court that the investigation had already been completed, the challan had been presented before the trial court, and the matter was fixed for framing of charges.

Issues Involved

  1. Whether the petitioner was entitled to regular bail after completion of investigation.
  2. Whether continued judicial custody was justified after filing of the challan.
  3. Whether allegations relating to fake GST invoices under Section 132 of the CGST Act warranted continued detention pending trial.

Petitioner’s Arguments

  • The petitioner sought regular bail on the ground that the investigation had already been completed.
  • The challan had been filed before the competent court.
  • The petitioner contended that no useful purpose would be served by keeping him in judicial custody during the pendency of the trial.
  • Since the trial was likely to take considerable time, continued incarceration was not warranted.

Respondent’s Arguments

The State opposed the bail petition but informed the Court that:

  • The petitioner had remained in custody.
  • The investigation had been completed.
  • The challan had already been presented on 04.08.2022.
  • The case was fixed for framing of charge before the trial court.

Court Order / Findings

The Punjab & Haryana High Court observed that:

  • The investigation stood completed.
  • The challan had already been presented before the competent court.
  • The allegations against the petitioner were confined to his role as proprietor of Chaudhary Metals, where he was alleged to have prepared fake invoices through bogus GST firms.
  • Since the trial was likely to take time, no fruitful purpose would be served by keeping the petitioner in custody.

Accordingly, the High Court allowed the petition and directed that the petitioner be released on regular bail, subject to furnishing the requisite bail and surety bonds to the satisfaction of the concerned Illaqa Magistrate/Duty Magistrate.

Important Clarification

This judgment does not adjudicate upon the merits of the allegations relating to fake GST invoices or tax evasion under the CGST Act. The High Court confined its consideration to the issue of grant of regular bail after completion of investigation and filing of the challan. The observations made in the order are solely for deciding the bail application and do not amount to a determination of guilt or innocence.

Sections Involved

Central Goods and Services Tax Act, 2017

  • Section 132 – Punishment for certain offences.

Indian Penal Code, 1860

  • Section 120-B – Criminal Conspiracy.
  • Section 420 – Cheating and dishonestly inducing delivery of property.
  • Section 467 – Forgery of valuable security, will, etc.
  • Section 468 – Forgery for the purpose of cheating.
  • Section 471 – Using forged document as genuine.
  • Section 201 – Causing disappearance of evidence of offence.

Important Legal Principle

Where the investigation has been completed, the challan has been filed, and the trial is likely to consume considerable time, the Court may grant regular bail, particularly when continued detention is not necessary for investigation

Link to Download the Order-https://mytaxexpert.co.in/uploads/1784806442_1920compressed.pdf

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