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Subhash Chouhan (s) v. Union Of India And Another (s).
Factual and Procedural Background
An appeal was brought challenging an order dated 21.06.2022 of the High Court of Chhattisgarh, which had granted bail to the appellant subject to conditions. One specific condition required the appellant to deposit Rs. 70 Lakhs, under protest, in favour of the Principal Commissioner, CGST, Raipur within 45 days from the date of release. The appeal targets only this monetary deposit condition. The underlying First Information Report pertains to alleged wrongful availing of Input Tax Credit amounting to Rs. 6,95,32,472/.
Legal Issues Presented
- Whether the High Court, while granting bail, could impose a condition requiring the appellant to deposit Rs. 70 Lakhs with the Principal Commissioner, CGST, Raipur within 45 days of release.
- Whether such a monetary deposit condition is sustainable in the absence of a final assessment under the GST Act establishing a legal liability to pay.
Arguments of the Parties
Appellant's Arguments
- The condition to deposit Rs. 70 Lakhs within 45 days as a pre-requisite for bail is unsustainable.
- The FIR concerns alleged wrongful availing of Input Tax Credit of Rs. 6,95,32,472/., but there is no final assessment under the GST Act; therefore, no legal liability to pay can be presumed.
Respondent's Position
- The learned Additional Solicitor General, appearing for the Union of India/State, stated that such a condition cannot be imposed while granting bail.
Table of Precedents Cited
No precedents were cited in the provided opinion.
Court's Reasoning and Analysis
The Court noted the context in which the High Court had imposed a condition requiring a deposit of Rs. 70 Lakhs as part of bail. It recorded the fair statement made by the learned ASG that such a condition cannot be imposed while granting bail. Considering the facts and circumstances, the Court concluded that the deposit condition was not sustainable. The order sets aside only this specific condition while sustaining all other conditions of the High Court's bail order.
Holding and Implications
HOLDING: The condition directing the appellant to deposit Rs. 70 Lakhs as part of the grant of bail is SET ASIDE. All other conditions in the impugned bail order are sustained. The appeal is ALLOWED TO THAT EXTENT. Pending applications, if any, stand disposed of.
Implications: The appellant is no longer required to deposit Rs. 70 Lakhs as a pre-condition for bail. The remaining bail conditions continue to govern the appellant. The opinion does not articulate broader implications or establish any new precedent.
1. Leave granted.
2. Heard learned counsel for the parties.
3. The challenge in this appeal has been made to the Order dated 21.06.2022 passed by the High Court of Chhattisgarh granting bail to the appellant subject to conditions. One of the conditions was that the appellant shall deposit a sum of Rs. 70 Lakhs under protest, in favour of the Principal Commissioner, CGST, Raipur within a period of 45 days from the date of his release. It is this condition, which is under challenge before us.
4. Learned counsel appearing for the appellant submits that the condition to deposit Rs. 70 Lakhs within 45 days from the date of the release as a pre-requisite condition for the bail is not sustainable inasmuch as the First Information Report was in respect of wrongfully availing the Input Tax Credit of Rs. 6,95,32,472/.
5. It is further submitted that there is no final assessment in this regard under the GST Act. Hence it cannot be presumed that the appellant is under a legal liability to pay the said amount.
6. As an officer of this Court, Mr. K.M. Nataraj, learned ASG appearing for the Union of India/State has fairly stated that such a condition cannot be imposed while granting bail.
7. Considering the above facts and circumstances, in our considered opinion, the condition directing the appellant to deposit a sum of Rs. 70 Lakhs is not liable to be sustained and is hereby set aside.
8. The rest of the conditions in the impugned order are sustained.
9. The appeal accordingly, stand allowed to that extent. Pending application(s), if any, shall stand disposed of.
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