HC Grants Bail to Chinese Woman in GST Evasion Case; Objects to CGST Affidavit Mentioning Apex Court Judges

The High Court of Judicature at Allahabad has granted bail to a Chinese national in connection with a GST evasion case registered by the CGST Commissionerate, Gautam Budh Nagar. The Allahabad High Court strongly objected to a counter-affidavit filed by the Assistant Commissioner of CGST. The Court was upset because the officer mentioned the names of Supreme Court judges while referring to their judgement.

A bail application was filed by a Chinese national, Alice Lee @ Li Tengli (applicant), in Allahabad High Court seeking enlargement on bail during trial in connection with Case No. 40 of 2025, under Sections 132(1)(d), 132(1)(e), 132(1)(f), 132(1)(l), and 132(1)(i) of the CGST Act, 2017. The case concerns alleged tax evasion by a company named M/s Tentech LED Display Pvt. Ltd. The company was alleged to have wrongly classified LED display units and paid GST at 18% instead of 28%, resulting in a reduction in overall tax liability of around Rs. 88.80 lakh for the financial years 2019-20 to 2024-25.

The accused, Alice Lee, was apprehended on August 26, 2025. He had been working in the company’s security department since February 2024, for which he was paid Rs. 15,000 per month. The offence committee is liable for punishment with a maximum sentence of five years and is triable by a magistrate. A co-accused named Vinay Kumar has already been granted bail by a coordinate branch of the High Court.

Previously, a writ petition had also been filed before the Supreme Court, objecting to her arrest. However, during the hearing, the Supreme Court held that they should first apply for bail before the appropriate court and refused to interfere.

The respondents, CGST and the Union of India, argued while opposing the bail that the offences committed are serious and she has already been arrested previously in another case. However, the court noted that the case mainly depends on documentary evidence, the investigation has already been completed, and there is no strong proof to show that she would interfere with or change the evidence.

Considering the aforesaid findings, the court granted the applicant bail, simultaneously imposing some strict conditions like regular court appearances when asked, not leaving India without permission, and submitting a certificate from the Chinese Embassy ensuring her presence during the trial.