The petition is filed under Section 439(1) Cr.P.C.
2. Petitioner is the sole accused in O.R. No. 10/ST/2014 on the file of Additional Chief Judicial Magistrate (Economic Offences), Ernakulam alleging offences under Sections 89(1)(i) and (ii) of the Finance Act 1994.
3. The petitioner runs a business by name Global Detective and Security Services. It is alleged by the prosecution that he collected a huge amount as service tax from his customers and did not remit it to the Government and has thus committed the offence mentioned above. The Submission of the learned Senior Counsel is that there is a dispute with regard to the amount the petitioner is liable to remit and he has already deposited Rs. 39 lakhs and he may be released on bail.
4. Heard the learned Senior Counsel appearing for the petitioner and the learned counsel for the Superintendent of Central Excise.
5. There is no dispute that the petitioner collected more than Rs.
1 crore from his customers as service tax and he failed to remit it into the Government account. The submission of the learned Senior Counsel is that he is entitled to a rebate under a particular Scheme and the amount due under the scheme has been deposited. This is B.A. No. 3045 of 2014 -2-
disputed by the learned counsel for the Department. The amount allegedly collected by the petitioner is about Rs. 1 Crore 50 lakhs. He has been in custody since 24.3.2014. The Department has collected some relevant evidence. Having regard to the fact that this is an Economic offence certain conditions have to be imposed.
6. In the result, this application is allowed on the following conditions.
i. The petitioner will be released on bail on his executing a bond for Rs.25,00,000/- with two solvent sureties each for the like sum to the satisfaction of the Court of enquiry.
ii. He shall deposit in the lower Court Rs. 50,00,000/- before his release on bail and another Rs. 50,00,000/- within one month after his release.
If he fails to deposit the amount after his release, the prosecution may file an application to cancel the bail. If he continues the business he shall not fail to deposit the amount he may collect in future from his customers. If the Department has already frozen the Bank accounts of the petitioner, the Department shall allow him to withdraw the amount required by him to deposit as per this order.
kp/-
K.ABRAHAM MATHEW, JUDGE.