Anticipatory bail granted in case of absence of concrete incriminating evidence to implicate the assessee

Last updated: 07 May 2021

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Quick Summary

The Kerala High Court has granted anticipatory bail to an assessee accused of non-payment of GST amounting to ₹17.53 Crores and failing to file returns. The court found no concrete evidence directly implicating the assessee, noting that while a co-accused alleged the assessee's involvement in filing returns and preparing false invoices, no sufficient proof was presented. The High Court emphasised that the Commissioner's power to authorise arrest requires 'reasons to believe' based on rational connection, not mere subjective satisfaction, and that safeguards under the Cr.P.C. and Constitution must be followed.

Court :
Kerala High Court

Brief :
The Hon'ble Kerala High Court in case of Abdul Shaji v. The Commissioner of Central Tax and Central Excise, The Superintendent of Central Tax and Central Excise (Order dated April 22, 2021 against Bail Application No. 220 of 2021) allowed anticipatory bail under Section 438 of the Code of Criminal Procedure, 1973 ('Cr.P.C. Act') to the assessee who apprehended arrest for an alleged offence of non-payment of GST to the tune of Rs 17.53 Crores and non-filing of GSTR 3B returns. Debunks the stance of Superintendent of Central Tax and Central Excise ('the Respondent') that the incriminating documents have been discovered to implicate the assessee as an accused or to proceed against him.

Citation :
Order dated April 22, 2021 against Bail Application No. 220 of 2021

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