LAWS(DLH)-2015-3-104

VIJAY VERMA Vs. STATE AND ORS.

Decided On March 11, 2015
VIJAY VERMA Appellant
V/S
State And Ors. Respondents

JUDGEMENT

(1.) This application under Section 438 of Cr.P.C. has been filed by the petitioner/applicant seeking directions to release him on bail in the event of his arrest in the proceedings initiated by the Office of the Commissioner of Service Tax, IAEA House, 17-B, IP Estate, New Delhi under Section 14 of the Central Excise Act, 1944.

(2.) The application has been filed by the applicant inter alia on the allegation that he is one of the directors of the company M/s Sun Nirman Infrastructure Pvt. Ltd. The company was incorporated in the year 2007. However, the applicant was not involved in its incorporation and was not connected with the said company in any manner whatsoever. The applicant purchased certain shareholding in the company and became one of the directors of the company since December, 2011/ January, 2012. It was only after January, 2012 that he stated looking into the affairs of the company. During his tenure, it was always the endeavour of the company to pay service tax on time. However, on account of earlier defaults and on account of business losses suffered by the company, there had been some delay in making payments towards service tax. The applicant received a notice dated 01.10.2013 from the Superintendent Service Tax (Anti-Evasion) from the office of respondent no.2 pursuant to which he appeared and submitted all the documents. His statement was duly recorded and it was informed that there are some alleged outstanding dues towards the service tax to the tune of Rs. 2.54 crores. Pursuant to another notice dated 26.11.2013, the applicant supplied most of the information including all the documents. In the month from March to June, 2013, the company paid a total sum of Rs.3 crores towards service tax dues to the department. Further, from September, 2013, approximately a sum of Rs.87 lac has been deposited. While the company was endeavouring to clear all the outstanding service tax dues, the respondent no.2 issue a notice to all the debtors of the company directing them not to make any payment to the company and instead deposit the same with the Service Tax Department. Not only that a notice was also issued to all the banks freezing the bank account of the company which resulted in virtual collapse of the business of the company. The officials of the respondent no.2 threatened the AR of the applicant that they would initiate action to arrest the applicant under the provisions of Central Excise Act, 1944 in case the entire outstanding dues are not cleared by the applicant as such apprehending arrest, the application in hand has been filed.

(3.) It is submitted by learned counsel for the applicant that the applicant has all the intention to pay all the outstanding dues which is reflected from the fact that initially a payment of Rs.3 crores was deposited and thereafter a sum of Rs.87 lac was deposited. Pursuant to the directions of this court, a sum of Rs.1 crore was deposited. Moreover, the applicant has resigned from the company with effect from 24.02.2014 and requisite Form No.32 was submitted before the Registrar of Companies and, therefore, the liability, if any, is of the company. In any case, the company has assets which are in excess of the amount liability which the respondent no.2 has claimed. Moreover, pursuant to the proceedings under Sections 397 and 398 read with Section 402 of the Companies Act, 1956, a retired Justice has been appointed as Chairman-cum-Director of the company. Under the circumstances, it was submitted that protection be granted to the applicant.