Allahabad HC Grants Bail to Accountant in ₹180 Crore Fake GST ITC Scam [Read Order]
The co-accused, alleged to be the main conspirator, had already been released on bail by the same court earlier in the day and that the case of the applicant stood on an equal, if not better, footing, said the court
Fake GST ITC, GST ITC, Allahabad High Court
Fake GST ITC, GST ITC, Allahabad High Court
The Allahabad High Court has granted bail to an accountant accused in a massive ₹180 crore fake Input Tax Credit (ITC) scam under Goods and Services Tax (GST), observing that the case rests on documentary evidence and that the co-accused had already been granted bail.
The applicant, Gaurav Tomar, was alleged to have assisted co-accused Chattar Pal Sharma in forming shell companies and availing as well as passing on fake ITC worth over ₹180 crore.
His counsel argued that the investigation was complete, the complaint had been filed, and that the applicant had been in custody for nearly a year. It was also highlighted that the maximum punishment prescribed under Sections 132(1)(b), 132(1)(c), and 132(1)(i) of the CGST Act, 2017, is five years and that the offences are triable by a Magistrate.
Justice Sameer Jain noted that the co-accused, alleged to be the main conspirator, had already been released on bail by the same court earlier in the day and that the case of the applicant stood on an equal, if not better, footing.
The Court said that the prosecution is entirely based on documentary and electronic evidence, and hence, prolonged custody would serve no purpose since there was no apprehension of tampering or influencing witnesses.
The bench depending on Supreme Court precedents including Ratnambar Kaushik v. Union of India (2023), Sanjay Chandra v. CBI (2012), Vineet Jain v. Union of India (2025), ruled that in economic offences of this nature, bail should be the rule and jail the exception, particularly where investigation is complete and the trial is likely to take time.
Accordingly, the Court allowed the bail application and directed that the applicant be released upon furnishing a personal bond and two sureties, subject to conditions including regular court appearance and non-indulgence in any criminal or anti-social activity.
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