Bail granted to a CA accused in a GST evasion of more than 40 crores

Allahabad High Court grants bail to Chartered Accountant accused in a GST evasion to the tune of more than 40 crores

In a recent judgment, Hon’ble Allahabad High Court has granted bail to a Chartered Accountant accused in a GST evasion to the tune of more than 40 crores

ABCAUS Case Law Citation:
4931 (2025) (12) abcaus.in HC

In the instant case an an application had been filed seeking release of the applicant Chartered Accountant on bail in GST evasion case registered under Section 132(1) (b), 132(1) (i) of GST Act 2017 in Kanpur.

It was submitted that applicant was a chartered accountant and as per allegations the other accused persons with his connivance committed the GST evasion in the tune of more than 40 crores but entire allegation against him was totally false.

It was further submitted that even for the alleged offence maximum five years punishment is provided and applicant is in jail for almost two months and even alleged offence is triable by Magistrate.

It was further submitted, after investigation complaint had been filed and as entire prosecution case is based on documentary evidence, therefore, there was no likelihood that trial will conclude in near future. Also, that apart from the present case, applicant CA was having no criminal history to his credit.

The counsel for DGGI opposed the prayer for bail but could not dispute the arguments on facts advanced by the applicant.

The Hon’ble High Court observed that the Hon’ble Supreme Court enlarged an accused on bail considering the facts that prosecution case was based on documentary and electronic evidence and investigation had been completed and accused was in jail for four months.

The Hon’ble High Court further noted that while granting bail to accused under the provisions of C.G.S.T. Act, the Hon’ble Supreme Court has observed that

“the offences alleged against the appellant are under Clauses (c), (f) and (h) of Section 132(1) of the Central Goods and Services Tax Act, 2017. The maximum sentence is of 5 years with fine. A charge-sheet has been filed. The appellant is in custody for a period of almost 7 months. The case is triable by a Court of a Judicial Magistrate. The sentence is limited and in any case, the prosecution is based on documentary evidence. There are no antecedents We are surprised to note that in a case like this, the appellant has been denied the benefit of bail at all levels, including the High Court and ultimately, he was forced to approach this Court. These are the cases where in normal course, before the Trial Courts, the accused should get bail unless there are some extra ordinary circumstances…”

The Hon’ble High Court opined that ordinarily an accused should be released on bail for offence under Section 132(1) C.G.S.T. Act. Therefore, considering the facts and circumstances of the case discussed above, the applicant was entitled to be released on bail.

Accordingly, the Hon’ble High Court ordered that the accused CA be released on bail on furnishing a personal bond and two sureties each in the like amount to the satisfaction of the court concerned with the following conditions:-

(i) The applicant shall appear before the trial court on the dates fixed, unless his personal presence is exempted.

(ii) The applicant shall not directly or indirectly, make inducement, threat or promise to any person acquainted with the facts of the case so as to dissuade him from disclosing such facts to the Court or any police officer or tamper with the evidence.

(iii) The applicant shall not indulge in any criminal and anti-social activity.

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