In a recent ruling, the Supreme Court granted bail to the assessee who got arrested for Goods and Services Tax ( GST ) fraud considering the lengthy incarceration and no direct documentary proof connecting to the assessee.
Saurabh Kumar (appellate) was accused of being involved in a GST fraud case, under Sections 132(1)(b), 132(1)(f), and 132(1)(i) of the Central Goods and Services Tax ( CGST ) Act, 2017. The case was filed with the Directorate General of GST Intelligence ( DGGI ) in Indore, Madhya Pradesh.
Complete Supreme Court Judgment on GST from 2017 to 2024 with Free E-Book Access, Click here
The appellate was arrested in connection with managing multiple fake firms and generating fraudulent input tax credit ( ITC ) based on fake invoices. The total fraudulent Input Tax Credit passed was approximately Rs. 8.99 crores.
The appellant had been in custody since 24 October 2023. He initially applied for bail before the Madhya Pradesh High Court, where the appellate argued that no incriminating material had been recovered from his possession.
However, the appellate application was rejected due to the seriousness and gravity of the offense, particularly his alleged involvement in fraudulently passing on fake Input Tax Credit ( ITC ) worth a substantial amount.
Complete Supreme Court Judgment on GST from 2017 to 2024 with Free E-Book Access, Click here
The petitioner approached the Supreme Court, seeking regular bail after being in custody for a long period.
The bench comprising Justice J.K. Maheshwari and Justice Rajesh Bindal noted that the documentary evidence gathered during the investigation and observed that the investigation had been completed, with the challan ( chargesheet ) already filed.
Given that the trial could take a long time to conclude, the Court decided to grant the petitioner bail without commenting on the case merits.
The Court allowed the bail petition, ordering the petitioner’s release on furnishing bail bonds amounting to Rs. 1,00,000 with sureties of the same amount and imposed serval other conditions.
Complete Supreme Court Judgment on GST from 2017 to 2024 with Free E-Book Access, Click here
Consequently, the Special Leave Petition was allowed, and any pending applications related to the case were disposed of.
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