HC grants Bail to CA allegedly borrowed UDIN from Colleague for Issuance of CA Certificate

A Chartered Accountant who allegedly borrowed a friend’s UDIN for the issue of a CA Certificate in connection with the GST refund has recently been granted bail by the Punjab and Haryana High Court. Since May 2022, the petitioner has been detained.

The petitioner is a Chartered Accountant by qualification, who was initially registered but had subsequently given it up. In the present case, he had been paid professional fee for uploading of the refund of Input Tax Credit. The petitioner and his co-accused Sunil Mahalawat were colleagues, as such the UDIN was borrowed by the petitioner from him for uploading and issuance of the CA certificate. He, however, further submits that otherwise as per Rule 89(m) of CGST Rules, CA certificate is not required for the aforesaid purpose. He further submits that pursuant to the notice by which, the petitioner was summoned, he appeared to join the investigation on 17.5.2022 but was arrested there and then. Thereafter, he was sent to the judicial remand but no request for police remand had been sought by the respondent- Department. The recovery of laptop and other relevant documents have already been effected from the petitioner.

The Coram observed that, “In the present case the investigation has been completed and the challan stands presented; he is not involved in any other case; he is in custody since 17.5.2022; nothing is to be recovered from him; there are a total of 21 PWs; it is a Magisterial trial, which is yet to commence; thus, further incarceration of the petitioner behind bars would not serve any useful purpose, the present petition for grant of regular bail deserves to be allowed.”

The Court held that, “Keeping in view the the facts of present case and the judgments referred to above, particularly in the cases of Sanjay Chandra and P.Chidambaram (supra), the instant petition is allowed. The petitioner is ordered to be released on regular bail, subject to his furnishing bail/surety bonds amounting to Rs.10 lakhs to the satisfaction of trial Court/Duty Magistrate concerned and subject to him not being required in any other case.

The petitioner shall abide by the following conditions:-

1. The petitioner will not tamper with the evidence during the trial.

2. The petitioner shall surrender his passport and will not leave the country without the permission of the Trial Court.

3. The petitioner will not change his residence without prior intimation to the Department and the trial Court.

4. The petitioner will not pressurise/intimidate the prosecution witnesses.

5. The petitioner will furnishing an undertaking by way of his affidavit before the trial Court that he will appear on each and every date fixed, unless his presence is exempted by a specific order of the Court.

6. The petitioner shall not commit an offence similar to the one involved in this, which he is accused of, or for commission of which he is suspected of.

7. The petitioner shall not directly or indirectly coerce, inducement, threaten or promise to any person acquainted with the facts of the case so as to dissuade him/ her from disclosing such facts to the Court or to any police officer or tamper with the evidence in any manner.

8. The petitioner shall not in any manner misuse his liberty.

9. Any infraction shall entail in withdrawal of the benefit granted by this Court.”

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