Jharkhand HC Grants Anticipatory Bail to Agents in GST Non-Deposit Case citing Main Allegations were Against Firm’s Proprietor [Read Order]

The Bench of Jharkhand High Court ruled that Anticipatory Bail was granted to both the Agents in a non-deposition of Goods and Services Tax ( GST ) case, observing that the main allegations were against the Firm’s Proprietor, who was directly involved in the business transaction, billing, and payment.

On 11.11.2025, Justice Sanjay Kumar Dwivedi, of the Jharkhand High Court, heard an anticipatory bail application (A.B.A. No. 6352 of 2025) filed by both the Petitioners.

The Petitioners sought protection from arrest in connection with Barsol P.S. Case No. 14 of 2025, registered under Sections 406, 420, 506, 34, and 120(B) of the Indian Penal Code.

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The matter originated from an agreement between the informant and Arvind Bhai Madhani, proprietor of M/s Bapa Sitaram Enterprises, for the supply of base oil. The informant had paid Mr. Madhani for the supply, but the allegation was that Mr. Madhani failed to deposit the Goods and Services Tax (GST) amount.

The Counsel for the Petitioners, represented by A.K. Sahani, argued that his clients were merely agents of the firm and had no direct role in the GST non-deposit. He also argued that all the payments, billing, transactions, and agreements regarding the supply of base oil for industrial use were all handled by the Proprietor himself.

On the other hand, the State Counsel, represented by Nehala Sharmin, appeared through Video Conferencing as well as the Counsel for the Informant, represented by K.S. Nanda, jointly opposed the Bail Application and highlighted the non-deposit of GST amount.

After reviewing the First Information Report (FIR), the High Court observed that the agreement and payment were made to the Proprietor, Arvind Bhai Madhani, who was responsible for the GST deposit.

The Court also ruled that the only allegation against the petitioners was their role as agents of the firm. The High Court, considering these facts, was inclined to grant anticipatory bail to both the petitioners under section482(2) of Bhartiya Nagrik Suraksha Sanhita (BNSS), 2023.

Thus, the High Court directed both the Petitioners to surrender before the Judicial Magistrate, First Class, Ghatshila, within three weeks and upon arrest, they were to be released on bail by furnishing a bail bond of Rs. 25,000/- each, with two sureties of like amount, in connection with Barsol P.S. Case No.14 of 2025.

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