Ratnambar Kaushik vs Union Of India

REPORTABLE

IN THE SUPREME COURT OF INDIA EXTRA-ORDINARY APPELLATE JURISDICTION

PETITION FOR SPECIAL LEAVE TO APPEAL (Crl.) No.10319 of 2022

Ratnambar Kaushik ….. Petitioner

Versus

Union of India ` ….. Respondent

ORDER

1. The petitioner is before this Court, assailing the order dated 21.10.2022,

passed by the High Court of Judicature at Rajasthan, Bench at Jaipur in S.B. Criminal

Miscellaneous Bail Application No.12475 of 2022. Through the said order the High

Court has dismissed the application filed by the petitioner hereunder under Section

439 of Code of Criminal Procedure1 seeking bail in the proceedings for the offence

alleged against him under Section 132(1)(a),(h),(k) and (l) read with Section 132(5) of

the Central Goods and Services Tax Act, 2017 2 .

2. Heard Shri Mukul Rohatgi, Shri C.S. Vaidyanathan, Shri Maninder Singh Signature Not Verified Digitally signed by Nidhi Ahuja Date: 2022.12.05 learned senior counsel for the petitioner and Shri Balbir Singh learned Additional 17:04:55 IST Reason:

1 For short “Cr.P.C.” 2 For short “GST”

Page 1 of 5 Petition for Special Leave to Appeal (Crl) No. 10319 of 2022

Solicitor General for the respondent. In that light, we have perused the petition

papers as also the counter affidavit filed on behalf of the respondent.

3. The gist of the allegations against the petitioner in the prosecution initiated

against him is that the petitioner had clandestinely transported raw unmanufactured

tobacco brought from Gujarat by 7 trucks weighing 90,520 kgs. It is alleged that raw

tobacco was cleared in the name of M/s Maa Ambey Enterprises, Bakoli from M/s

Arihant Traders, Kheda, Gujarat but the said trucks went to Patparganj Area to M/s

Galaxy Tobacco in Delhi. It is further alleged that the said quantity of unmanufactured

tobacco has been apparently used in the clandestine manufacture and supply of

chewing tobacco without payment of leviable duties and tax. The petitioner contends

that even if the tax is levied at 28%, the value would be around ₹10,30,824/-.

However, as per the case of the respondent, the total tax/duty and cess involved

would be ₹15,57,28,345/-. The said contention has been raised on the basis of the

projected manufacture of zarda pouches from the said quantity of unmanufactured

tobacco. Thus on the projected number of pouches, the tax amount if taken into

consideration, would be to that extent. It is further contended on behalf of the

respondent that in the course of the investigation it has also come to light, apart from

the 7 trucks, 287 more trucks loaded with raw unmanufactured tobacco has been

transported as per the details obtained from the Toll/RFID data of NHAI, which shows

the movement of the trucks.

Page 2 of 5 Petition for Special Leave to Appeal (Crl) No. 10319 of 2022

4. Insofar as the allegations made against the petitioner are concerned,

learned senior counsel for the petitioner while rebutting the same would contend that

at this juncture, such allegations made by the respondent against the petitioner are

far-fetched. Even if one accepts as correct, the allegation on which the proceedings

is predicated, wherein 90,520 kgs. of raw/unmanufactured tobacco in 7 trucks is taken

note of, the GST, if reckoned, comes to only ₹1,93,26,020/-. It is contended that the

sum of ₹11,04,34,400/- shown as cess by the respondent is even without the proof of

manufacture of zarda and it has been done only to indicate the projected value of

more than ₹15 Crores. Learned senior counsel for the petitioner therefore disputed

the allegations and contended that such allegations have been made only to allege

cognizable and non-bailable offence against the petitioner so as to deny bail and take

him into custody.

5. Though allegations and counter allegations are made, at this stage, it would

not be necessary for us to advert to the details of the rival contentions, since the

matter in any event is at large before the trial court and any observations on merits

herein would prejudice the case of the parties, therein. However, for the limited

purpose of answering the prayer for the grant of bail, the contentions are taken note

of. It is no doubt true, that an allegation is made with regard to the transportation of

unmanufactured tobacco and it is alleged that such procurement of unmanufactured

tobacco is for clandestine manufacture and supply of zarda without payment of

leviable duties and taxes. Though it is further contended that in the process of the

investigation, the transportation of a larger quantity of unmanufactured tobacco

Page 3 of 5 Petition for Special Leave to Appeal (Crl) No. 10319 of 2022

weighing about 35,57,450 kgs. is detected, these are all matters to be established

based on the evidence, in the trial.

6. In considering the application for bail, it is noted that the petitioner was

arrested on 21.07.2022 and while in custody, the investigation has been completed

and the charge sheet has been filed. Even if it is taken note that the alleged evasion

of tax by the petitioner is to the extent as provided under Section 132(1)(l)(i), the

punishment provided is, imprisonment which may extend to 5 years and fine. The

petitioner has already undergone incarceration for more than four months and

completion of trial, in any event, would take some time. Needless to mention that the

petitioner if released on bail, is required to adhere to the conditions to be imposed

and diligently participate in the trial. Further, in a case of the present nature, the

evidence to be tendered by the respondent would essentially be documentary and

electronic. The ocular evidence will be through official witnesses, due to which there

can be no apprehension of tampering, intimidating or influencing. Therefore, keeping

all these aspects in perspective, in the facts and circumstances of the present case,

we find it proper to grant the prayer made by the petitioner.

7. Hence, it is directed that the petitioner be released on bail subject to the

conditions to be imposed by the trial Court, which among others, shall also include the

condition to direct the petitioner to deposit his passport. Further, such other

conditions shall also be imposed by the trial Court to secure the presence of the

petitioner to diligently participate in the trial. It is further directed that the petitioner be

produced before the trial Court forthwith, to ensure compliance of this order.

Page 4 of 5 Petition for Special Leave to Appeal (Crl) No. 10319 of 2022

8. The special leave petition is allowed accordingly.

9. Pending applications, if any, shall stand disposed of.

…..…………....................J. [A.S. BOPANNA]

.…..………......................J. [HIMA KOHLI]

New Delhi;

December 05, 2022

Page 5 of 5 ITEM NO.1501 COURT NO.4 SECTION II

S U P R E M E C O U R T O F I N D I A RECORD OF PROCEEDINGS

Petition(s) for Special Leave to Appeal (Crl.) No. 10319/2022

(Arising out of impugned final judgment and order dated 21-10- 2022 in SBCRMBA No. 12475/2022 passed by the High Court of Judicature for Rajasthan at Jaipur)

RATNAMBAR KAUSHIK Petitioner(s)

VERSUS

UNION OF INDIA Respondent(s)

[HEARD BY: HON. A.S. BOPANNA AND HON. HIMA KOHLI, JJ.]

(With IA No. 164055/2022 - EXEMPTION FROM FILING C/C OF THE IMPUGNED JUDGMENT and IA No. 164054/2022 - EXEMPTION FROM FILING O.T.)

Date : 05-12-2022 This matter was called on for pronouncement of order today.

For Petitioner(s) Mr. Anirban Bhattacharya, AOR

For Respondent(s) Mr. Balbir Singh, ASG.

Mr. Arijit Prasad, Sr. Adv.

Mr. Rupender Sinhmar, Adv.

Mr. Naman Tandon, Adv.

Mr. Samarvir Singh, Adv.

Mr. Prasenjit Mohpatra, Adv.

Mr. Shyam Gopal, Adv.

Mr. Prahlad Singh, Adv.

Mr. Mukesh Kumar Maroria, AOR

Hon’ble Ms. Justice Hima Kohli pronounced the order

of the Bench comprising Hon’ble Mr. Justice A. S. Bopanna

6 and Her Ladyship.

The special leave petition is allowed in terms of

the signed reportable order concluding as follows:

“7. Hence, it is directed that the petitioner be

released on bail subject to the conditions to be

imposed by the trial Court, which among others,

shall also include the condition to direct the

petitioner to deposit his passport. Further, such

other conditions shall also be imposed by the trial

Court to secure the presence of the petitioner to

diligently participate in the trial. It is further

directed that the petitioner be produced before the

trial Court forthwith, to ensure compliance of this

order.

8. The special leave petition is allowed accordingly.

9. Pending applications, if any, shall stand disposed

of.”

(NIDHI AHUJA) (RENU KAPOOR) AR-cum-PS ASSISTANT REGISTRAR [Signed reportable order is placed on the file.]

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