The Supreme Court in the case Subhash Chauhan Versus UOI observed and has overturned a bail condition which is imposed by Rs. 70 lakhs, the amount which is alleged of improp-
erly claimed ITC. It has been contended by the petitioner before the court that there being no
final assessment in respect of the wrongful availment of ITC under the GST Act. Therefore, this court cannot be presumed that the appellant is under a legal obligation to pay the amount. The bench comprising of Justice Krishna Murari and Justice BV Nagarathna observed while considering these factors and has set aside the bail condition. It has also been stated by Ad-
ditional Solicitor General of India KM Nataraj fairly stated that such conditions
cannot be imposed while granting bail. Further, an order dated 21.06.2022 has been chal-
lenged by the appellant which is being passed by the High Court of Chhat-
tisgarh granting bail to the appellant subject to conditions. Thus, one of the conditions being that
the appellant shall deposit a sum of Rs. 70 lakhs un- der protest, in favor of the Principal Commissioner, the CGST, Raipur, within a period of 45 days from the
date of his release. Before the court, it has been contended by the appellant that the condi-
tion for depositing Rs. 70 lakhs within 45 days fromthe date of the release as a
prerequisite condition for the bail is not sustainable as the first information report was being in respect of wrongfully availing the input tax credit of Rs. 6,95,32,472. The counsel, AOR Hi-
manshu Tyagi appeared for the Appellant. The counsel, A.S.G. K.M. Nataraj represented the Re-
spondent.