1. Heard Sri Lal Mani Singh, the learned counsel for the applicant, Sri Dinesh Kumar Srivastava, the learned Additional Government Advocate and perused the record.

2. The instant application has been filed seeking release of the applicant on bail in Case Crime No. 705 of 2018, under Sections 417, 467, 468, 471 and 120-B IPC, Police Station Bilhaur, District Kanpur Nagar during pendency of the trial in the Court below.

3. The aforesaid case has been registered on the basis of an F.I.R. lodged by the Deputy Commissioner, Tax against “Firm M/s S.V. Enterprise, Nasirapura, Tehsil and Block Bilhaur, Kanpur Nagar” alleging that the applicant is the proprietor of the aforesaid firm and he has caused loss of revenue by claiming wrong input tax credit and the firm has issued tax invoices without actual outward supply of any material, which violates the provisions of Central and State Goods and Service Tax Act, 2017. It is alleged that the trader has claimed wrong input tax credit of Rs. 109.71 lakh. It is alleged that the aforesaid conduct of the trader violates the provisions of Section 16 (2) (C) of Central and State Goods and Service Tax Act, 2017.

4. In the affidavit filed in support of the bail application, it has been stated that the applicant is innocent and he has been falsely implicated in the present case. It has further been stated in the affidavit that the applicant lives in village Atrauli, District Hardoi, he is not literate and he can merely write his name in Hindi and he may be a victim committed by some person by misusing his documents. It has categorically stated that the applicant has not forged any document wrongfully claiming input tax credit.

5. It has further been stated in the affidavit that nothing has been recovered from the possession of the applicant or on his pointing out and that he has been arrested from his village.

6. It has also been stated in the affidavit that the applicant has no criminal history. The affidavit contains an undertaking that in case the applicant is released on bail, he will not misuse the liberty and he will abide by the conditions imposed by this Court.

7. The affidavit further states that the applicant is in custody since 21.05.2021 and a chargesheet has already been submitted before the learned Trial Court way back on 15.06.2021 and the applicant’s presence is not required for custodial interrogation.

8. The learned counsel for the applicant has submitted that the applicant’s incarceration is without any proof and that the trial is not likely to conclude in the near future. He has placed reliance on the judgment in Dataram Singh Vs. State of U.P. and another reported in (2018)3 SCC 22 and Sanjay Chandra Vs. Central Bureau of Investigation, (2012) 1 SCC 40. He has placed reliance on a decision of this Court in Criminal Misc. Bail Application No. 21536 of 2022 (Shri Roopak Vashishth Vs. Union of India and another) decided on 29.07.2022 wherein this Court has granted bail to a person accused of evasion of GST by claiming wrong input tax credit amounting to Rs. 6,09,85,989/- without supply of any goods.

9. His submission is that the allegation against the applicant is evasion of tax amounting to Rs. 109.71 lakh and, therefore, the present case falls under Section 132 (i) (iii) as per which a maximum punishment which can be imposed upon the accused person may extend to imprisonment for a period of one year. He has submitted that the allegations made against the applicant at the most make out a case under under Section 132 of the Central and State Goods and Service Tax Act and the Sections 420, 467, 468, 471, 120-B IPC have been imposed merely on the basis of allegation made under Section 132 of the Central and State Goods and Service Tax Act only.

10. The applicant is languishing in jail since 21.05.2021.

11. Per contra, the learned Additional Government Advocate has opposed the prayer for grant of bail and he has submitted that the applicant is involved in economic offences, and therefore, the discretionary relief of bail could not be granted to him.

12. Having considered the aforesaid facts and submissions and keeping in view the fact that there is an allegation of evasion of taxes in which maximum punishment which can be imposed upon the applicant is imprisonment of one year, that the other allegations are based on the principle allegation of wrongfully claiming I.T.C. for which the maximum punishment is imprisonment for upto one year, whereas the applicant is languishing in jail for more than one year and also considering the fact that the applicant has no criminal history, I am of the view that the applicant is entitled to be released on bail.

13. In light of the preceding discussion and without making any observation on the merits of the case, the instant bail application is allowed.

14. Let the applicant Sudama Bajpai be released on bail in Case Crime No. 705 of 2018, under Sections 417, 467, 468, 471 and 120-B IPC, Police Station Bilhaur, District Kanpur Nagar on furnishing a personal bond and two sureties each in the like amount to the satisfaction of the court below, subject to the following conditions:-

(i) The applicant will not tamper with the evidence during the trial.

(ii) The applicant will not influence any witness.

(iii) The applicant will appear before the trial court on the date fixed, unless personal presence is exempted.

(iv) The applicant shall not directly or indirectly make inducement, threat or promise to any person acquainted with the facts of the case so as to dissuade him from disclosing such facts to the Court to any police officer or tamper with the evidence.

15. In case of breach of any of the above condition, the prosecution shall be at liberty to move an application before this Court seeking cancellation of the bail.