GST Update

 Desk of CA. Praveen Sharma – 1036 Series (CAPS) 

Karnataka High Court IN THE CASE OF  Vishal Dadaso Tamkhade, Employee of Attica Gold Pvt. Ltd. v. Director General of Goods and Services Tax Intelligence & Others

Karnataka High Court Grants 10-Day Transit Protection in Alleged ?100 Crore GST Evasion Case

In a significant order balancing individual liberty with the needs of investigation, the Karnataka High Court granted limited transit protection to the petitioners in a case involving alleged GST evasion of nearly ?100 crore. The matter arose in Vishal Dadaso Tamkhade, Employee of Attica Gold Pvt. Ltd. v. Director General of Goods and Services Tax Intelligence & Others, reported on 03.07.2026.

The petitioners approached the High Court seeking transit/interim anticipatory bail to protect themselves from immediate arrest and to enable them to approach the competent jurisdictional court at Chennai for appropriate relief.

The High Court clarified that it was not examining the merits of the allegations or expressing any opinion on the alleged GST evasion. The interim protection was granted purely as a temporary measure to facilitate access to the appropriate legal forum.

Accordingly, the Court granted transit protection for a period of ten days, subject to strict conditions. The petitioners were directed to execute a personal bond, furnish adequate sureties, and extend full cooperation to the investigating authorities throughout the investigation.

The order reiterates that procedural fairness and adherence to due process remain fundamental principles, even in cases involving serious economic offences. At the same time, the Court ensured that the investigation would not be hampered by imposing appropriate safeguards and conditions.

The ruling demonstrates that transit or interim anticipatory bail is an exceptional procedural remedy intended to preserve the right of an accused to seek relief before the competent court. Such protection does not amount to a finding on the merits of the case or a determination regarding the allegations of tax evasion. The decision highlights the judiciary's approach of balancing effective enforcement of GST laws with the constitutional protection of personal liberty and fair legal process.

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