Conditional Bail Granted by Allahabad HC in ₹35 Crore GST Tax Evasion Case Noting Four-Month Custody [Read Order]
The Court granted bail after finding no need for continued detention given the completed investigation.
The High Court of Judicature at Allahabad granted conditional bail in a prosecution under the Central Goods and Services Tax Act, 2017, (CGST ACT) after observing that the alleged tax evasion case was based on documentary material and that the applicant had already remained in custody for more than four months.
The appellant, Siddhant Rana, filed a bail application in a complaint case arising from allegations of Goods and Services Tax evasion under Sections 132(1)(b)(c)(d)(f)(i) of the CGST Act, 2017. According to the case record, the Commissionerate (Anti-Evasion) alleged that the appellant had availed ineligible Input Tax Credit by creating fake firms. Investigation was concluded, and a complaint was filed before the Magistrate.
The appellant through Counsel Prem Narayan Singh and Ram Bahadur submitted that the entire prosecution rested on documentary evidence, the appellant had no criminal history, and he had been in custody since 18.06.2025. They contended that since the investigation had been completed and the complaint was already before the trial court, no purpose would be served by continued detention. Further emphasized that the trial would take considerable time to conclude.
The bench comprising Justice Sameer Jain noted that although the allegation involved Goods and Services Tax evasion exceeding ₹35 crore, the offences were triable by a Magistrate and carried a maximum sentence of five years. The Court held that in cases based primarily on documentary and electronic material, bail should generally be granted once investigation is completed since the accused has spent substantial time in custody.
The Court observed that the investigation had concluded, the prosecution's case rested entirely on documentary evidence. Nonetheless, the trial would take considerable time and that any further detention was unnecessary.
Accordingly, the Court granted bail subject to conditions, including mandatory appearance before the trial court, non-interference with witnesses or evidence, and abstain from criminal activity.
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