Patna HC granted bail in Rs. 51,936 GST Fraud Cases

Prabhat Kumar vs. State of Bihar (Patna High Court)

In the case of Prabhat Kumar vs State of BiharIn the case, the petitioner sought anticipatory bail on charges under sections of the Indian Penal Code relating to fraud and forgery. The allegations involved the whistleblower causing a loss of ₹51,936 in GST. According to the prosecution, petitioner committed acts that resulted in tax evasion. However, the defense lawyer informed the court that the plaintiff had fully repaid the GST amount in cash. As evidence, a cash receipt was submitted as part of the second supplementary affidavit. The petitioner also stated that both parties reached a compromise and requested the withdrawal of the case, as evidenced by the compromise petition dated January 9, 2024. Additionally, it was determined that the plaintiff had a clean record.

In view of the petitioner’s actions towards resolving the tax dispute and the absence of any objection from the Additional Public Prosecutor (APP), the Patna High Court granted interim bail. The court ordered the release of the petitioner on a surety of ₹ 10,000 and two sureties of the same amount in case he is arrested or voluntarily surrenders. The conditions set out in Article 438(2) of the Code of Criminal Procedure also applied. This decision was taken on the grounds of refund of the GST amount and finding an amicable solution between the parties concerned.

As a result, the court considered the full repayment of the disputed tax and the agreement between the parties as important factors in stipulating bail. Without any objection from the state, petitioner’s clean record and successful resolution of the financial situation led the court to grant bail under certain conditions.

FULL TEXT OF PATNA HIGH COURT JUDGMENT/ORDER

Heard learned counsel for the petitioner and the State.

2. The petitioner is apprehended in a registered case for offenses punishable under Sections 419, 420, 423, 406, 467, 468, 471 of the Indian Penal Code.

3. According to the prosecution case, this petitioner has caused loss of GST tax amounting to Rs. 51,936/- to the informant.

4. Learned counsel for the petitioner submits that the entire amount of tax amounting to Rs. 51,936/- was deposited in cash (money receipt was annexed as Annexure-4 to the 2nd additional return) and accordingly both parties reached a compromise on 09.01.2024 and submitted a compromise petition (Annexure-3) before 195. Petition for permission to withdraw the case dated 2021 (Annex-3/1). The plaintiff has a clean record.

5. Learned APP on behalf of the State does not object to the objection filed on behalf of the petitioner.

6. Considering the above mentioned facts and circumstances of the case, this bail is permitted and it is decided to extend this bail if the above mentioned plaintiff is apprehended/surrendered to the court below within six weeks from today. He was released on bail against posting a surety bond of Rs. 10,000/- (ten thousand), along with two sureties of the same amount each to the satisfaction of the Magistrate, 1^st Class, Darbhanga, Bahadurpur PS Case No. of 2021. 195, subject to the conditions set out in Section 438(2) of the Code of Criminal Procedure.