Jharkhand HC Grants Bail to Accused in ₹15.83 Cr Fake GST ITC Availment Case [Read Order]

The Jharkhand High Court has granted bail to an accused alleged to have fraudulently availed and utilized Input Tax Credit ( ITC ) amounting to ₹15.83 crore under the Goods and Services Tax ( GST ) noting that the accused had remained in custody for more than four months.

The Petitioner, Harshvardhan, approached the High Court seeking bail based on a complaint instituted by the Directorate General of GST Intelligence (DGGI).

According to the allegations, the petitioner, acting as the husband and power-of-attorney holder of the proprietor of M/s Raghupati Steel Traders, had fraudulently availed and utilized fake GST InputTax Credit amounting to ₹15.83 crore, which attracts penal consequences under Section 132 of the CGST Act.

The case was registered for offences punishable under Sections 132(1)(c), 132(1)(f), 132(1)(l) and 132(5) of the Central Goods and Services Tax Act, 2017.

The counsel of the petitioner, Adv. Nitin Kr. Pasari requested bail, depending on the Supreme Court's decision in Ratnambar Kaushik v. Union of India. Since the accused had been detained for more than four months and the evidence was mostly documentary, bail was granted in the GST evasion case.

The counsel, forming a comparison, contended that the petitioner, who has been in court detention for more than four months since February 11, 2026, also deserves bail.

The petitioner further assured the Court that he would cooperate with the trial proceedings and would neither influence nor intimidate witnesses during the course of the case.

On the other hand, the Directorate General of GST Intelligence opposed the bail application and sought continued detention of the accused.

Justice Anil Kumar Choudhary, after considering the period of custody already undergone by the accused, directed the release of the petitioner on furnishing a bail bond of ₹5 lakh along with two sureties of the like amount to the satisfaction of the Special Judge, Economic Offences, Jamshedpur.

While granting relief, the High Court imposed several conditions, including a direction that the petitioner must cooperate with the trial, furnish his mobile number and Aadhaar card before the trial court, and undertake not to change his mobile number during the pendency of the proceedings.

The Court also directed that the petitioner shall not annoy, influence, or disturb any witness connected with the case.

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