Examine the implications as regards the bailability and quantum of punishment on prosecution, in respect of the following cases pertaining to the…

(i) Failure to pay any amount collected as tax beyond 3 months from due date of payment is a specified offence as per clause (d) of Section 132 (1) of the CGST Act, 2017. In the present case, failure to deposit the tax 4 lakh (245lakh -241 lakh). As the amount of failure does not exceed 200lakh therefore, failure to deposit 4lakh collected as tax by 'Makkhanlal' will not be punishable with imprisonment as per section 132 (1) of the CGST Act, 2017. Further, falsification of financial records by 'Makkhanlal' is a specified offence as per section 132 (1) (d) and punishable with imprisonment upto 6 months or with fine or both as per clause (iv) of section 132 (1) assuming that falsification of records is with an intention to evade payment of tax due under the CGST Act, 2017 and the said offence is bailable in terms of section 132 (4) . (ii) Failure to pay any amount collected as tax beyond 3 months from due date is punishable with imprisonment upto 5 years and with fine, if the amount of tax evaded exceeds 500lakh in terms of section 132 (1) (d) read with clause (i) of section 132 (1) of the CGST Act, 2017. Since the amount of tax evaded by 'Kishore' exceeds 500lakh (550lakh -30 lakh), 'Kishore' is punishable with an imprisonment for a term which may extend to 5 years and with fine. It has been assumed that amount of 520lakh collected as tax is not paid to the Government beyond 3 months from the due date of payment of tax. Such offence is non-bailable in terms of section 132 (5) of the CGST Act, 2017. If 'Makkhanlal' and 'Kishore' repeat the offence, they shall be punishable for second and for every subsequent offence with imprisonment upto 5 years and with fine in terms of section 132 (2) of the CGST Act, 2017. Such imprisonment shall also be of at least 6 months in the absence of special and adequate reasons to the contrary to be recorded in the judgment of the Court.