Gauhati HC Allows Bail in ₹6.12 Crore GST Fraud Case Involving Passing on Input Tax Credit [Read Order]
The bail was granted subject to several stringent conditions: the petitioner must not leave the territorial jurisdiction without permission, must cooperate in the trial, must not influence witnesses, and must refrain from committing similar offences.
![Gauhati HC Allows Bail in ₹6.12 Crore GST Fraud Case Involving Passing on Input Tax Credit [Read Order]](https://images.taxscan.in/h-upload/2025/06/29/2056161-gauhati-hc-bail-gst-fraud-case-input-tax-credit-taxscan.webp "Gauhati HC Allows Bail in ₹6.12 Crore GST Fraud Case Involving Passing on Input Tax Credit [Read Order]")
The Gauhati High Court granted bail to the accused who was arrested in connection with an alleged ₹6.12 crore GST ( Goods and Services Tax ) fraud involving the fraudulent passing of ineligible Input Tax Credit ( ITC ) without actual supply of goods. The petitioner was accused of involvement, as a partner of M/s Aadi Enterprises and M/s Trident Consulting, in illegally availing...
The Gauhati High Court granted bail to the accused who was arrested in connection with an alleged ₹6.12 crore GST ( Goods and Services Tax ) fraud involving the fraudulent passing of ineligible Input Tax Credit ( ITC ) without actual supply of goods.
The petitioner was accused of involvement, as a partner of M/s Aadi Enterprises and M/s Trident Consulting, in illegally availing and passing on ineligible ITC ₹5.69 crore through Aadi Enterprises and ₹0.43 crore through Trident Consulting without any actual movement of goods. He had been in judicial custody since 23 January 2025 and remained incarcerated for over 98 days at the time of hearing.
The petitioner’s counsel argued that the arrest violated the mandatory procedural safeguards under Section 69 of the CGST Act and the Bharatiya Nagarik Suraksha Sanhita (BNSS), 2023. It was specifically contended that the arrest was made without issuing a prior notice under Section 41A of Cr.PC (now Section 35/BNSS), and that the Commissioner’s authorization, a precondition under Section 69 of the CGST Act, was absent. Further, it was submitted that a proper assessment determining the liability was also not conducted before the arrest.
Although the GST department opposed the bail citing prior offenses and forged documentation used to obtain GST registration, the High Court noted that the investigation in the present case was complete, a charge sheet had been filed, and the petitioner had been in custody for a substantial period.
After hearing the submissions, Justice Malasri Nandi ordered the release of the petitioner on bail. The Court directed that he furnish a bail bond of ₹50,000 with two sureties of like amount to the satisfaction of the Chief Judicial Magistrate, Kamrup (M), Guwahati.
The bail was granted subject to several stringent conditions: the petitioner must not leave the territorial jurisdiction without permission, must cooperate in the trial, must not influence witnesses, and must refrain from committing similar offences. Any breach of these conditions would lead to cancellation of bail.
While granting bail, the Court clarified that its observations were confined solely to the bail proceedings and would not affect the merits of the case at trial.
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