Facts of the Case

Aditya Jain, son of Sri Ashok Kumar Jain, resident of Kolkata, West Bengal, was granted bail by the Additional Sessions Judge No. 1, Kamrup (M), Guwahati, in BA No. 363/2023, in connection with Case No. DGCI/INV/FUP/51/2023 registered under Section 132(1)(b) of the Central Goods and Services Tax Act, 2017, investigated by the Directorate General of GST Intelligence (DGGI), Guwahati. Condition No. 1 of the bail order dated 11.05.2023 required the petitioner to appear before the Investigating Officer once every seven days and cooperate with the investigation. The petitioner filed a criminal revision petition before the Gauhati High Court under Section 397 read with Section 401, and Sections 439(1)(b) and 482 of the Code of Criminal Procedure, 1973, seeking relaxation of this weekly reporting condition. The matter was heard on 06.11.2023 by a Single Judge.

Issues Involved

  1. Whether the weekly reporting condition imposed while granting bail could be relaxed given the petitioner's consistent compliance and personal hardship.
  2. Whether relaxing the frequency of appearance would prejudice the ongoing DGGI investigation under Section 132(1)(b) of the CGST Act.

Petitioner's Arguments

  • The petitioner submitted that he had appeared before the Investigating Officer more than 22 times since being released on bail and had fully cooperated with the investigation.
  • It was argued that the petitioner's wife was undergoing IVF treatment requiring his presence, while the petitioner resided in Kolkata and had to repeatedly travel to Guwahati to comply with the weekly reporting condition.
  • The petitioner contended that 22 weeks of regular appearance and frequent travel had caused him significant hardship, warranting relaxation of Condition No. 1 of the bail order dated 11.05.2023.

Respondent's Arguments

  • Learned Standing Counsel for GST, appearing for the Union of India through the DGGI, stated that the Department had no objection to relaxing the reporting condition.
  • The Department nonetheless maintained that continued interrogation of the petitioner was necessary since the investigation was still pending, and suggested that appearance be permitted once a month for three months rather than being done away with entirely.

Court Order/Findings

  • The Court found the Department's suggestion of monthly appearance for three months to be fair and reasonable in light of the petitioner's compliance record and personal circumstances.
  • The Court modified Condition No. 1 of the bail order dated 11.05.2023 in BA No. 363/2023, directing the petitioner to appear before the Investigating Officer once every month for the next three months, and thereafter as and when required by the Investigating Officer.
  • The criminal revision petition was accordingly disposed of on the basis of this modified condition, with the investigation permitted to continue to its logical conclusion.

Important Clarification

  • Bail conditions imposed in GST enforcement matters under Section 132 of the CGST Act are not immutable; courts will relax reporting frequency where the accused has demonstrated sustained compliance and shows genuine personal hardship, provided the investigation is not prejudiced.
  • A revision under Sections 397/401 read with Section 439(1)(b)/482 CrPC is an appropriate remedy to seek modification (rather than cancellation) of bail conditions, and courts will balance investigative needs against the accused's circumstances rather than granting either extreme.

Sections Involved

  • Section 132(1)(b) of the Central Goods and Services Tax Act, 2017 — penal provision for issuing invoices without supply of goods/services leading to wrongful ITC or refund, invoked in the underlying DGGI investigation.
  • Section 397 read with Section 401 of the Code of Criminal Procedure, 1973 — revisional jurisdiction invoked to seek modification of the bail condition.
  • Section 439(1)(b) of the Code of Criminal Procedure, 1973 — power of the High Court to impose or modify bail conditions.
  • Section 482 of the Code of Criminal Procedure, 1973 — inherent power of the High Court invoked alongside the revisional remedy.

Decision – In Favour of

The criminal revision petition was disposed of in favour of the Assessee/accused to the extent of relaxing the reporting frequency from weekly to monthly, while preserving the Department's right to require more frequent interrogation if needed for the investigation — a balanced outcome rather than an outright win for either side.

Related Case Laws

No directly on-point case notes are currently published on this site.

Case Details

  • Court: Gauhati High Court
  • Case No.: Crl.Rev.P./449/2023
  • CNR: GAHC010232322023
  • Coram: Justice Mridul Kumar Kalita
  • Decision Date: 06.11.2023
  • Disposal Nature: Bail condition relaxed - appearance before Investigating Officer reduced in frequency

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