Case Title: Vinaykant Ameta v. Union of India
Court: High Court of Rajasthan
Petition No.: S.B. Criminal Miscellaneous Bail Application No. 18243 of 2021
Date of Judgement: 7 December 2021
Category of Dispute: Bail Application in GST Offence
Relevant Sections: Sections 132(1)(a), (f), (h), (j), (l) of the CGST Act, 2017; Section 439 of Cr.P.C.
Facts of the Case [¶1–2]:
- The petitioner, a Director in M/s Miraj Products Private Limited, was arrested on 25.10.2021 in relation to alleged tax evasion under the CGST Act.
- He was accused of involvement in tax evasion amounting to ₹869 crore based on ongoing investigation by DGGI, Udaipur.
- The petitioner argued that the department lacked sufficient data and was acting on conjecture, with no unaccounted packaging material or fake bills recovered from the premises.
- It was contended that the tax involved in the seized material was only ₹8.65 lakh, below ₹5 crore, making the offence bailable.
- A deposit of ₹60 crore was made under protest, and the offence was argued to be compoundable and triable by Magistrate.
Questions in Consideration [¶5]:
- Whether the petitioner is entitled to bail under Section 439 Cr.P.C., given the gravity and ongoing nature of the alleged GST evasion offence under Section 132 of the CGST Act.
Judgement of the Court [¶7]:
- Given the seriousness of the allegations and without expressing any opinion on the merits, the Court found it inappropriate to grant bail.
- Accordingly, the bail application was dismissed.
Between Fine Lines:
- The High Court refused bail in a serious economic offence under GST involving alleged evasion of ₹869 crore.
- Deposit of ₹60 crore by the company was seen as indicative of wrongdoing, despite claims it was made under protest.
- The Court stressed that economic offences are grave and affect national interest.
- Even without conclusive trial-stage evidence, seriousness of allegations was sufficient to deny bail.
- Ongoing investigation and non-cooperation by company officers were significant in rejecting bail.
Summary of Referred Cases:
| Name of Case | Citation | Summary | Verdict in Case Referred |
| Tarun Jain v. DGGI | [2021] 132 taxmann.com 299 / [2022] 89 GST 380 | Delhi HC granted bail where evidence was insufficient and arrest unjustified. | Bail granted |
| Ronak Kumar Jain v. Union of India | S.B. Criminal Misc. Bail App. No. 16083/2021 (4-10-2021) | Rajasthan HC granted bail considering lesser tax amount and cooperation. | Bail granted |
