Halari Mahammadusman Zubaibhai Usmanbhai VS State of Gujarat

This application seeks regular bail under Section 439 of the Code of Criminal Procedure in connection with File No. DGGI/AZU/GR.D/12(4)-30/2019-20. The case is registered with the Directorate General of GST Intelligence, Zonal Unit, Ahmedabad, for offences under Sections 132(1)(b) and 132(1)(c) of the Central Goods and Services Tax (CGST) Act, 2017.

Upon issuance of a notice by the Court, learned Standing Counsel Mr. Ankit Shah appeared for respondent No.2 and opposed the grant of any relief requested by the applicant.

Representing the applicant, learned Senior Counsel Mr. N.D. Nanavaty, alongside Mr. Chetan K. Pandya, communicated that the applicant is prepared to submit an undertaking. This undertaking includes a commitment that the applicant will not transfer, alienate, or create third-party rights over his immovable properties. Furthermore, the applicant is willing to provide detailed information about all his immovable properties to the Directorate.

The application at hand seeks regular bail under Section 439 of the Code of Criminal Procedure regarding a case registered with the Directorate General of GST Intelligence, Zonal Unit, Ahmedabad, pertaining to offenses under Sections 132(1)(b) and 132(1)(c) of the Central Goods and Services Tax Act, 2017.

In response to a notice from the court, the respondent’s counsel opposes any relief. However, the applicant’s counsel offers to provide an undertaking to ensure the applicant does not transfer any immovable properties and will disclose all such properties to the authorities. They propose that these properties remain untouched until the GST authority determines any dues. They also argue for bail with suitable conditions given the nature of the offense.

The prosecution, represented by the Assistant Public Prosecutor and the respondent’s counsel, opposes bail due to the severity of the offenses.

Both parties’ advocates waive the need for further elaboration.

After considering the arguments and reviewing the available evidence, several points are noted:

1. The applicant faces charges under Sections 132(1)(b) and 132(1)(c) of the Central Goods and Services Tax Act, 2017, which carry a maximum sentence of five years.

2. The applicant has been in custody since July 21, 2019, for approximately 55 days without a formal complaint filed by the respondent.

3. The respondent has not sought the remand of the applicant from the Trial Court.

4. The investigation is nearing completion.

Ultimately, the court will decide on the bail application, weighing the nature of the offenses, the duration of custody, and the progress of the investigation.

The application for bail was filed under Section 439 of the Code of Criminal Procedure, relating to a case registered with the Directorate General of GST Intelligence, Zonal Unit, Ahmedabad, under Sections 132(1)(b) and 132(1)(c) of the Central Goods and Services Tax Act, 2017.

During the court proceedings, the respondent’s counsel opposed the grant of bail. However, the applicant’s counsel stated that the applicant was willing to provide an undertaking not to transfer or create third-party rights over his immovable properties and to supply details of all such properties to the authorities. They argued for the grant of bail considering the nature of the offence and proposed conditions to ensure the applicant’s cooperation.

Both the Assistant Public Prosecutor and the respondent’s counsel opposed bail, citing the seriousness of the offences. However, neither side pressed for further argument.

The court considered various factors, including the nature of the charges, the duration of the applicant’s detention without a filed complaint, the lack of a request for remand by the complainant, and the progress of the investigation. After hearing both sides, the court exercised its discretion to grant bail.

The court ordered the applicant’s release on bail upon executing a bond of Rs. 50,000 with two local sureties of Rs. 25,000 each. The bail was subject to several conditions, including not misusing liberty, cooperating with the investigation, surrendering the passport, seeking permission to leave the state, and regularly marking presence with the authorities. Additionally, the applicant was required to provide an undertaking not to transfer his immovable properties and to supply details of all such properties to the authorities by a specified date.

The case pertains to an application filed under Section 439 of the Code of Criminal Procedure for regular bail concerning File No. DGGI/AZU/GR.D/12(4)-30/2019-20 registered with the Directorate General of GST Intelligence, Zonal Unit, Ahmedabad, for offenses under Sections 132(1)(b) and 132(1)(c) of the Central Goods and Services Tax Act, 2017.

Upon the court’s notice, the respondent’s counsel has opposed granting any relief. The applicant’s counsel has expressed readiness to provide an undertaking that the applicant will not transfer, alienate, or create third-party rights over his immovable properties and will disclose all such properties to the Directorate General of GST Intelligence. It is proposed that these properties will not be transferred until the authority determines any Goods and Services Tax liability against the applicant. The applicant’s counsel also suggests conditions for bail, considering the nature of the offense.

The government’s counsel opposes bail, citing the gravity of the offenses. However, both sides do not press for further detailed orders.

After hearing arguments and reviewing the case, the court notes several aspects:

1. The charges against the applicant carry a maximum sentence of five years.

2. The applicant has been in custody for almost 55 days, with no complaint filed by the respondent.

3. The complainant has not requested the applicant’s remand.

4. Investigation is nearing completion.

Considering the offense and allegations, the court decides to grant bail. The applicant is ordered to be released on bail on the conditions proposed by the applicant’s counsel. These conditions include surrendering the passport, marking presence with the respondent on specific dates, providing the current address, and furnishing an undertaking regarding immovable properties.

The court emphasizes that the applicant will be released only if not required for any other offense. Breach of bail conditions empowers the Sessions Judge to take appropriate action. The bail bond is to be executed before the lower court.

The court clarifies that its observations at this stage should not influence the trial court’s decisions during the trial.

The ruling is made absolute, and direct service is permitted.

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