Facts of the Case

Vishal Kumar filed a second petition for anticipatory bail in connection with FIR No. 21 dated 04.11.2022, registered under Sections 420, 465, 467, 468, 471, 120-B IPC and Sections 7, 7-A, 8 of the Prevention of Corruption Act, 1988. The FIR arose from secret information that a GST evasion scam involving scrap transport was being carried out via the Ambala National Highway in connivance with tax department officials, with vehicles carrying scrap either without bills or on the basis of fake/reduced-value bills. The petitioner was alleged to be a 'passer' who facilitated smooth movement of such vehicles by coordinating with Enforcement Staff officials. His first anticipatory bail petition (CRM-M-20015-2023) had been withdrawn on 05.05.2023 with liberty to surrender and seek regular bail, but he never did so.

Issues Involved

  1. Whether the petitioner, having previously withdrawn a similar petition with liberty to surrender, was entitled to a fresh grant of anticipatory bail.
  2. Whether his alleged role as a 'passer' facilitating GST-evading scrap transport warranted custodial interrogation.

Petitioner's Arguments

  • The petitioner sought anticipatory bail on the same set of facts, seeking protection from arrest in the ongoing investigation.

Respondent's Arguments

  • No explanation was offered by the petitioner as to why, despite assuring the Court he would surrender before the trial court in his earlier petition, he failed to do so.

Court Order / Findings

  • The Court noted the petitioner had given no explanation for his failure to surrender as previously assured to the Court.
  • On merits, it found that the petitioner's role — as an alleged 'passer' — needed to be thoroughly investigated to uncover the modus operandi and the possible involvement of departmental officials.
  • Considering the petition sans merit, the Court dismissed it.

Important Clarification

This is a bail order concerning an alleged GST evasion racket involving scrap transport — the Court did not adjudicate whether GST evasion actually occurred or the extent of the petitioner's involvement in it; it only assessed whether pre-arrest protection was warranted at the investigation stage, and found it was not, given the petitioner's own conduct and the need for further probe.

Sections Involved

  • Central Goods and Services Tax Act, 2017 (underlying evasion allegation, not adjudicated)
  • Indian Penal Code, 1860 — Sections 420, 465, 467, 468, 471, 120-B
  • Prevention of Corruption Act, 1988 — Sections 7, 7-A, 8

Decision – In Favour of

Decided in favour of the Respondent (State of Punjab) — the anticipatory bail petition was dismissed; no ruling was made on the underlying GST evasion allegations.

Case Details

  • Court: High Court for the States of Punjab and Haryana at Chandigarh
  • Case No.: CRM-M-25789-2023 (O&M)
  • Neutral Citation: 2023:PHHC:104836
  • Coram: Hon'ble Mr. Justice Gurvinder Singh Gill
  • Date of Decision: 11.08.2023

Link to Download the Order

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