Revisiting The Doctrinal Divide: Cancellation Versus Revocation Of Bail Orders

BRIEF FACTS OF THE CASE

• DGGI had alleged that M/s Anmol Tradex Pvt. Ltd. ("Company") had fraudulently availed input tax credit (ITC) based on non-genuine invoices from the suppliers who were involved in circular trading and the issuance of fake Invoices.
• Sudhir Gulati ("Respondent"), Director of the Company was arrested on 21.09.2020 when he appeared before the officers of DGGI pursuant to the summons issued. The investigation officers further examined him while he was in judicial custody.
• The Respondent had applied for bail u/s 437 of the CrPC, which was granted by the Chief Metropolitan Magistrate (CMM) vide a detailed order dated 17.10.2020.
• The DGGI challenged the said order before the Hon'ble Delhi High Court on the following grounds, namely
  1. The CMM did not emphasize whether a prima facie case existed against the Respondent