Facts of the Case

The petitioner, Manoj Goyal, sought anticipatory bail apprehending arrest in connection with BI(EO) P.S. Case No. 4/2023, registered under Sections 120B/468/471/420 IPC. The FIR alleged that one Dulu Deb, proprietor of M/s Purbanchal Minerals (GSTIN 18AJDPD8578L1ZN), had claimed to sell coal worth Rs. 37,96,37,381.79 with tax involvement of Rs. 1,89,81,869.08 to various coal traders across Assam, but investigation found no corroborating movement records (lorry slips, weighbridge slips, bank transactions), and several of the purported upstream suppliers had been suo motu cancelled by tax authorities in Jharkhand/UP. The case diary further revealed that the petitioner, though an employee on paper, was allegedly the de facto operator of the firm, having financed Dulu Deb and evaded approximately Rs. 62,01,655 in GST through fake/forged invoices and e-way bills across purchases of Rs. 14,24,54,417 from seven coal traders.

Issues Involved

  1. Whether anticipatory bail should be granted to a person alleged to be the real controller of a firm engaged in fake-invoice-based GST evasion, where the investigation into concealed documents and financial trails remained incomplete.

Petitioner's Arguments

  • The petitioner was merely an employee of the arrested accused Dulu Deb, the proprietor of M/s Purbanchal Minerals, and had no access to commit the alleged offences; he was willing to cooperate with the investigation if granted pre-arrest bail.

Respondent's Arguments

  • The case diary revealed that the petitioner was, in fact, the de facto proprietor running the coal business under Dulu Deb's GST registration, using fake/forged GST invoices and e-way bills causing loss of approximately Rs. 62,01,655 to the government, in connivance with other coal dealers/firms.
  • Documents necessary to the investigation remained to be seized, and pre-arrest bail would adversely hamper the ongoing investigation into a scheme where eight of the coal suppliers had already been found to be suo motu cancelled taxpayers.

Court Order / Findings

  • On perusing the case diary, the Court found prima facie evidence that the petitioner was, in substance, running M/s Purbanchal Minerals despite the GST registration standing in Dulu Deb's name, having purchased coal worth about Rs. 14.24 crore (including GST and cess) through fake/forged tax invoices and e-way bills, evading roughly Rs. 62 lakh in GST.
  • The Court found prima facie evidence that the petitioner had concealed relevant documents/registers of the business and that illegal digital money transfers between the petitioner's and Dulu Deb's bank accounts had surfaced during investigation, and held that granting pre-arrest bail was likely to adversely affect the ongoing investigation.
  • The anticipatory bail application was accordingly rejected.

Important Clarification

Where case-diary material prima facie indicates that the applicant for anticipatory bail is the actual controlling mind behind a GST-registered entity implicated in fake-invoice trading, and documents/financial trails material to the investigation remain to be secured, courts will decline pre-arrest bail on the ground that custodial or unimpeded investigation is necessary, even if the GST registration formally stands in another person's name.

Sections Involved

  • Section 438, Cr.P.C., 1973 — provides for grant of anticipatory (pre-arrest) bail.
  • Sections 120B, 420, 468, 471, IPC — the underlying criminal offences of conspiracy, cheating and forgery invoked alongside the GST fraud allegations.

Decision – In Favour of

In favour of the Department — the anticipatory bail application was rejected, leaving the petitioner exposed to arrest pending investigation.

Case Details

  • Court: Gauhati High Court
  • Case Number: AB/2318/2023
  • CNR / Citation: GAHC010140712023
  • Coram: Hon'ble Mr. Justice Ajit Borthakur
  • Date of Order: 20 July 2023

Link to Download the Order

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