ORAL ORDER

1. The present application is filed under Section 439 of the Code of Criminal Procedure, 1973, for regular bail in connection with arrest memo dated 18.3.2019 and F.No.DGCEI/AZU/12(4)73/2018-19 issued under Section 69 of the Central Goods and Service Tax Act, 2017.

2. Learned Advocate appearing on behalf of the applicant submits that considering the nature of the offence, the applicant may be enlarged on regular bail by imposing suitable conditions.

3. Learned APP appearing on behalf of the respondent-State has opposed grant of regular bail looking to the nature and gravity of the offence.

4. Learned Advocates appearing on behalf of the respective parties do not press for further reasoned order.

5. Having heard the learned advocates for the parties and perusing the material placed on record and taking into consideration the facts of the case, nature of allegations, gravity of offences, role attributed to the accused, without discussing the evidence in detail, this Court is of the opinion that this is a fit case to exercise the discretion and enlarge the applicant on regular bail. This Court has also considered the aspects that; (i) the applicant is in jail since 18.3.2019; (ii) the applicant is arrested for the alleged offence under the provisions of the Central Goods and Service Tax Act, 2017. It is contended by learned senior counsel Mr.Raju for the applicant that maximum punishment prescribed for the alleged offences is five years; (iii) without entering into merits of the case, it is further contended that the father of the applicant has now filed an undertaking before this Court without prejudice to his rights and contentions, wherein it has been stated in paragraphs 3 and 4 as under:

“3. Accordingly, it is undertaken that M/s  PHD Trading Corporation Ltd. has already paid an amount of ₹ 5,00,000/- towards Tax vide Challan No.CPIN 19032400166851 dtd.14/03/2019. Over and above the same, within a week’s time from the date of bail order, I undertake that M/s PHD Trading Corporation Ltd., who has an unutilize3d credit balance of ₹ 1,27,00,000/- in their credit ledger shall reverse the same credits. This is how, a payment of ₹ 1,27,00,000/- would be made towards GST by M/s PHD Trading Corporation Ltd., by way of utilizing credits within a period of one week from the bail order. Likewise, I undertake that said M/s PHD Trading Corporation Ltd., would also pay ₹ 18,20,000/- in cash within said period of one week from the date of bail order;

(4) I further undertake that over and above payment of said tax liability as aforesaid by M/s PHD Trading Corporation Ltd., within a period of one week from the date of bail order of Your Lordships, M/s Desai Impex Pvt.Ltd. would also made a payment of ₹ 54,00,000/- in cash towards tax liability within a period of six months from the date of bail order.”

At this stage, learned senior counsel, under the instructions, further submits that the applicant is also ready and willing to deposit further amount of ₹ 21 lacs within a period of six months from the date of release of the applicant. Learned advocate Mr.Ankit Shah appearing for the respondent-department has taken instructions from the concerned officer and submitted that they are satisfied with the undertaking given on behalf of the applicant. In view of the aforesaid, without going into the further merits of the case and looking to the over all facts and circumstances of the case, I am inclined to consider the case of the applicant.

6. This Court has also taken into consideration the law laid down by the Hon’ble Apex Court in the case of Sanjay Chandra Vs. Central Bureau of Investigation, reported in [2012] 1 SCC 40.

7. Hence, the present application is allowed. The applicant is ordered to be released on regular bail in connection with FIR being with arrest memo dated 18.3.2019 and F.No.DGCEI/AZU/12(4)73/2018-19 on executing a personal bond of ₹ 10,000/- (Rupees Ten Thousand only) with one surety of the like amount to the satisfaction of the trial Court and subject to the conditions that he shall;

[a] not take undue advantage of liberty or misuse liberty; 

[b] not act in a manner injurious to the interest of the prosecution;

[c] surrender passport, if any, to the lower court within a week;

[d] not leave India without prior permission of the Sessions Judge concerned;

[e] mark presence before the concerned Police Station between 1st to 10th day of every English calendar month for a period of six months between 11:00 a.m. and 2:00 p.m.;

[f] furnish the present address of residence to the Investigating Officer and also to the Court at the time of execution of the bond and shall not change the residence without prior permission of this Court;

(g) shall abide by the undertaking dated 23.4.2019 and also shall deposit ₹ 21 lacs within a period of six months from the date of the release before the respondent department.

(h) the present applicant Pranit Hem Desai shall also file an undertaking to the aforesaid effect before the concerned trial Court within a period of one week from the date of his release and the applicant shall abide by the said undertaking. Any breach of the undertaking will be viewed seriously.

8. The authorities will release the applicant only if he is not required in connection with any other offence for the time being. If breach of any of the above conditions is committed, the Sessions Judge concerned will be free to issue warrant or take appropriate action in the matter. Bail bond to be executed before the lower Court having jurisdiction to try the case. It will be open for the concerned Court to delete, modify and/or relax any of the above conditions, in accordance with law.

9. At the trial, the Trial Court shall not be influenced by the prima facie observations made by this Court in the present order.

10. Rule is made absolute to the aforesaid extent. Direct service is permitted.