GST Evasion Investigation Completed and No Antecedents: Rajasthan HC Grants Bail to accused Considering Over Four Month Incarceration [Read Order]

The Rajasthan High Court, at the Jaipur Bench, granted bail to the accused in a case involving alleged Goods and Services Tax(GST) evasion and it was granted considering the completed investigation, the lack of antecedents of the petitioner, and his period of incarceration.

The accused-petitioner, Nemichand Tetarwal, Proprietor of Parveen Motor, was arrested on June 11, 2025, in connection with Case No. F.No.DGGI/INT/28/2024-Gr-B-0/ ADG-DGGI-ZU-Jaipur.

Know How to Prepare Estimation and Viability for Project Reports? Know more Click here

The Petitioner was charged with offence(s) under Sections 132(1)(a), (b), (f), (h), and (i) of the Central Goods and Services Tax Act, 2017. This bail application, filed under Section 483 of the Bharatiya Nagarik Suraksha Sanhita (BNSS), was a challenge to the order dated July 14, 2025, which had dismissed his initial bail application.

The Counsel for the petitioner contended that the petitioner was wrongly implicated in the present case. The counsel also stated that the investigation was completed and the petitioner had no antecedents.

The counsel also pointed out that the petitioner had been imprisoned for more than four months. The counsel also highlighted that the maximum punishment for the alleged offence is five years.

The counsel for the Union of India (Respondent), which was the Intelligence Officer, Central Goods and Service Tax Directorate opposed the application. The Department argued that the matter involved an economic offence.

The counsel stated that the petitioner had allegedly admitted in a statement under Section 70 of the CGST Act, 2017, that he had made clandestine supply of goods without generating invoices and had issued ineligible Input Tax Credit (ITC) to 14 firms. The charge sheet mentioned a tax liability of ₹22,95,89,054.

The bench, comprising Justice Vinod Kumar Bharwani, observed that the petitioner was arrested on June 11, 2025, and the investigation from the petitioner had been completed, with the charge-sheet already filed.

The court also observed that the maximum punishment for the alleged offence of tax evasion is imprisonment extending to five years and fine and there were no antecedents against the petitioner.

The Court referred to the Supreme Court decisions in Ratnambar Kaushik Vs. Union of India and Vineet Jain Vs. Union of India.

In the Ratnambar Kaushik case, the Supreme Court had granted bail after the accused underwent over four months of incarceration, noting that the trial's completion would take time and that the evidence would primarily be documentary and electronic.

In the Vineet Jain case, the Supreme Court observed that bail was denied at all levels in a case with a limited sentence and where prosecution was based on documentary evidence and observed that such cases should normally be granted bail unless there are extraordinary circumstances.

Considering the petitioner's incarceration for about five months, and the trial's conclusion will take some time, the Court observed it was just and proper to grant bail. The High Court allowed the bail application, ordering the petitioner to be released on a personal bond of ₹2,00,000 with two sureties of ₹1,00,000 each.

The bail was granted subject to conditions, including that the petitioner shall make himself available before the trial court, shall not threaten or induce any person acquainted with the facts of the case, and shall not leave India without previous court permission. The application was allowed.

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