HC Grants Bail in Rs. 21.89 Crore Fake ITC Case Under CGST Act

The petitioner, arrayed as Accused No.2, approached the High Court seeking regular bail in a GST anti-evasion case involving alleged wrongful availment of input tax credit (ITC) worth Rs. 21.89 crore through fake invoices. He was arrested on 28.01.2026 and had been in judicial custody since 29.01.2026. The petitioner claimed innocence and argued that the offence had been incorrectly treated as non-bailable.

He also pointed out that a co-accused had already been granted bail and that most of the investigation had already been completed, making further detention unnecessary. The prosecution opposed the plea, stressing the seriousness of the offence under the CGST Act and contending that the case involved non-bailable provisions. It was also argued that the investigation was still ongoing.

Issue Raised: Whether the petitioner in a fake ITC case under the CGST Act is entitled to regular bail considering custody period and parity with co-accused.

HC Held: The High Court allowed the bail application, noting that the petitioner had already spent a significant period in judicial custody. It also took into account that a co-accused had been granted bail, making parity a relevant consideration.

The Court observed that the investigation had progressed substantially, reducing the need for further custodial interrogation. In such circumstances, continued detention was not justified. Therefore, the petitioner was granted regular bail subject to conditions, including furnishing a personal bond of Rs. 25,000 with two sureties, appearing before GST authorities as required, and complying with all statutory conditions.

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