Chhattisgarh HC Grants Bail to ₹16 Crore GST ITC Fraud-Accused noting 1 Year+ Incarceration without Trial [Read Order]

The Chhattisgarh HighCourt recently granted regular bail to a person who had been incarcerated for more than a year in connection with allegations of fraudulent availment of Input Tax Credit (ITC) worth over ₹16 crore, noting the prolonged incarceration without commencement of trial justified the grant of bail.

The petitioner, Ajay Singh, had been arrested on 7 April 2025 for allegedly generating and utilising fake invoices without actual supply of goods to avail ITC of approximately ₹16.83 crore, in contravention of numerous provisions of the Central Goods and Services Tax Act, 2017. A complaint had already been filed before the competent court, and the matter was pending consideration and awaiting finality.

The applicant, who remained behind bars since his arrest on 7 April 2025, approached the High Court and filed the First Bail Application under Section 483 of the Bharatiya Nagarik Suraksha Sanhita, 2023 (BNSS) for grant of regular bail.

Kashif Shakeel, appearing for the Applicant argued that he had been falsely implicated in this case that the quantum and nature of punishment under the GST Act, 2017 is based upon the quantum of tax involved. Since the prosecution has not even determined the quantum, the continued detention of the accused was completely unwarranted and against his constitutional rights.

Maneesh Sharma, appearing for the respondent authorities opposed the bail application and submitted that the complaint has been filed in the present case before the competent Court and hence the applicant is not entitled for grant of bail.

Justice Parth Prateem Sahu observed that the petitioner had already undergone more than one year of custody since 7 April 2025. It was further noted that the trial had not commenced and its conclusion was likely to take considerable time. Without commenting on the merits of the allegations, the Court found that continued detention of the petitioner was unjustified given the circumstances.

Accordingly, the Court allowed the bail application and directed that the applicant be released on furnishing a personal bond of ₹1,00,000 along with one solvent surety to the satisfaction of the trial court.

Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates