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Gujarat HC allows Bail in wrongful availment of ITC Case [Read Order]

ITC - AAR - vexatious ITC - Investigation - Taxscan

The Gujarat High Court has allowed the bail application in the case of the wrongful availment of Input Tax Credit (ITC).

In the case of Amit Chandrakant Shah vs. State of Gujarat, the high could be allowed the application for bail in the case of the wrongful availment of Input Tax Credit (ITC) on the condition that the applicant shall not misuse his liberty, surrender the passport, do not hamper the interest of the prosecution, mark presence on every Monday, do not leave India before the prior permission, furnish the residential address, etc.

The applicant is facing alleged charges under Section 132(1) (b), (c), (f), (k), (l) of Gujarat Goods and Service Tax (GGST) Act, 2017 read with Section 120-B of the Indian Penal Code (IPC) as the applicant is alleged to wrongfully avail the Input Tax Credit (ITC), which is beyond INR 5 Crores.

The applicant filed the bail application contending that the nature of offence allegedly committed by the applicant is that the applicant may be enlarged on the regular bail by imposing certain conditions, which was opposed by the respondent.

The issue raised was whether the applicant can be granted bail for the wrongful availment of Input Tax Credit (ITC) or not?

The Single Judge Bench of the Gujarat High Court consisting of Justice Umesh A. Trivedi allowed the application for bail in the case of the wrongful availment of Input Tax Credit (ITC) on the condition that the applicant shall not misuse his liberty, surrender the passport, do not hamper the interest of the prosecution, mark presence on every Monday, do not leave India before the prior permission, furnish the residential address, etc.

The court said that this ruling must not have any impact on the prima facie observation of the trial court.

To Read the full text of the Order CLICK HERE
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