GST Update

 Desk of CA. Praveen Sharma – 990 Series (CAPS) 

CHHATTISGARH HIGH COURT IN THE CASE OF Santosh Wadhwani  

The applicant filed a bail application under the BNSS after being arrested in a GST case involving alleged fraudulent ITC of ?11.44 crore under Section 132 of the CGST Act.

The prosecution alleged that the applicant availed fake ITC using non-existent firms without actual supply of goods. It was claimed that transactions were only on paper and funds were routed back in cash.

The applicant argued that he is innocent, the case is based on documents, and no further custodial interrogation is required. He also contended that proper legal procedures were not followed and that the matter relates to tax determination, not criminal detention.

The department opposed bail, citing the seriousness of the offence, involvement of fake firms, and ongoing investigation.

After hearing both sides, the Court observed that:

The case is primarily based on documentary evidence

Investigation is substantially complete

No further custodial interrogation is required

The offence carries a maximum punishment of 5 years

Considering these factors and the period of custody since 29.01.2026, the Court granted bail without commenting on merits.

The applicant was directed to be released on furnishing a personal bond of ?1,00,000 with one surety. The bail will remain effective till disposal of the case.

LINK:CA. Praveen Sharma on Linkedin

Regards
CAPS