BACKGROUND OF THE CASE 

The Supreme Court set aside the order of the Rajasthan high court passing an impugned order to deposit 2 crores for the bail granted under section 132 of the Central Goods and Services Tax Act, 2017 for evading tax liability.

In this matter, the appellant was accused of depriving the benefit of input tax credit to the tune of Rs 11.3 crore and evading the tax.

SUPREME COURT ANALYSIS 

The high court’s requirement was scorned by the supreme court, which ruled that no onerous conditions may be placed on bail. In Subhash Chauhan V. Union of India, 2023 SCC Online SC 110, the court overturned the requirement that the appellant posts  Rs. 2 crore bond in order to be granted bail for an offence under Section 132 of the Central Goods and Services Tax Act, 2017 for obstructing payment of taxes. The court also permitted the appellant to request the removal of the money previously put up as bail, but the appellant must adhere to other requirements set forth in the bail agreement.