Petitioner to Be Released on Bail Since Formation of Fake Firms and E-Way Bills Lacked Adequate Evidentiary Support | HC
- Blog|News|GST & Customs|
- 2 Min Read
- By Taxmann
- |
- Last Updated on 11 April, 2025
Latest from Taxmann
Case Details: Prem Sundar Chaudhary v. Union of India - [2025] 172 taxmann.com 849 (Patna)
Judiciary and Counsel Details
- Ashok Kumar Pandey, J.
-
D.V. Pathy, Sr. Adv., Sadashiv Tiwari, Hiresh Karan, Ms Shivani Dewalla & Ms Prachi Pallavi, Advs. for the Petitioner.
-
Sriram Krishna, Sr. Standing Counsel, Prabhat Kr. Singh, Shashank Shekhar, Ms Rashmi Ranjan, Advs. for the Petitioner
Facts of the Case
The petitioner was arrested under Section 132(1) of the CGST Act on allegations of transporting scrap using fake invoices and e-way bills and operating multiple bogus firms. The Directorate General of GST Intelligence claimed a tax evasion based on documents and devices seized during a search.
The petitioner sought bail, arguing that the arrest was made merely on suspicion without establishing the mandatory ‘reason to believe’ under Section 69 of the CGST Act. It was contended that the arrest memo did not specify the amount of tax evasion and that procedural guidelines, including those issued by the Finance Ministry, were not followed.
High Court Held
The High Court noted that the mandatory conditions under Section 69 for arrest were not fulfilled in this case, as no specific material indicating tax evasion or its quantum was presented. The arrest was made without proper justification and in violation of procedural safeguards. Relying on the Supreme Court’s guidelines for arrest, the Court held that there was no compelling reason to deny bail when arrest had been made solely on suspicion without establishing the statutory threshold. Accordingly, the Court directed that the petitioner be released on bail, subject to furnishing of a bail bond with two sureties.
List of Cases Reviewed
- Cr. APP. No. 838 of 2021 arising out of SLP (Crl.) No. 5442 of 2021, dated 16-8-2021, followed
Disclaimer: The content/information published on the website is only for general information of the user and shall not be construed as legal advice. While the Taxmann has exercised reasonable efforts to ensure the veracity of information/content published, Taxmann shall be under no liability in any manner whatsoever for incorrect information, if any.
Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.
The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:
- The statutory material is obtained only from the authorized and reliable sources
- All the latest developments in the judicial and legislative fields are covered
- Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
- Every content published by Taxmann is complete, accurate and lucid
- All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
- The golden rules of grammar, style and consistency are thoroughly followed
- Font and size that’s easy to read and remain consistent across all imprint and digital publications are applied
Sign Up
To subscribe to our weekly newsletter please log in/register on Taxmann.com
Latest Books
Everything on Tax and Corporate Laws of India
To subscribe to our weekly newsletter please log in/register on Taxmann.com
CA | CS | CMA
