Rajasthan HC grants bail to the person accused of tax evasion to the tune of Rs. 18 crores

By Shelal-

In a big tax evasion to the tune of Rs. 18 crores, Rajasthan High Court granted bail to the person accused in the case. The petitioner, Dhanraj Singhal has been arrested for the offenses under Sections 132(1), (b), and (c) of Rajasthan Goods and Services Tax Act, 2017 punishable under Section 132(1)(i) read with Section 132(5) of Rajasthan Goods and Services Tax Act, 2017.

The petitioner submitted that a decision on the processing of the tax payable has yet to be made. Notice of penalty levy has been given, but the same has not been determined by the respondents. He further submitted that allegation of issuing invoices without supplying the goods, has been levelled against as many as 26 firms; but, none of them has been implicated as an accused. The petitioner has been in detention since 5 February 2020 and the offenses are compoundable, the statutory sentence allowed for under the Act is for a period of five years and the pre-charge testimony is yet to begin.

However, the counsel for the Rajasthan Goods & Services tax Department argued that there was enough evidence on the record to prove that the complainant was instrumental in the tax evasion of a substantial sum of Rs. 18 crore.

Justice Mahendra Kumar Goyal, a single judge, issued a bail application and ordered that the defendant-petitioner be released on bail provided the accused has a personal bond in the amount of Rs. 1,000,000, along with two assurances in the amount of Rs. 50,000 each, to the satisfaction of the Court of Justice, stipulating that he would comply with all the conditions laid down in Section 437(3) Cr.P.C.