The Chhattisgarh High Court has granted anticipatory bail to Raipur-based businessman in a case involving alleged wrongful availment of Input Tax Credit (ITC) amounting to ₹17.83 crore under the CGST/SGST regime.
Passing the order on February 12, 2026, Chief Justice Ramesh Sinha held that custodial interrogation of the applicant was not necessary at this stage, as the allegations were primarily founded on documentary and digital evidence already seized by the GST authorities during search proceedings.
The case arose from searches conducted in May 2025 under Section 67 of the CGST Act at the applicant’s business premises, following inputs suggesting fraudulent availment and passing of ITC. The investigation led to the issuance of multiple summons and proceedings under Sections 69 and 132 of the CGST/CGGST Act, alleging tax evasion to the tune of ₹17.83 crore through suspicious transactions with certain entities.
The applicant approached the High Court apprehending arrest, contending that the investigation was documentary in nature, that no incriminating material necessitating custodial interrogation had been recovered, and that offences under Section 132 of the CGST Act are fiscal and regulatory in character, carrying a maximum punishment of five years and being compoundable under law.
The Court noted that the maximum sentence prescribed for the alleged offence does not bring it within the category of heinous crimes warranting pre-trial incarceration. It further observed that the relevant records and digital data were already in the possession of the investigating agency and that continued detention was not shown to be indispensable for the purposes of investigation. The Court also took into account that one co-accused had already been granted regular bail in a related matter.
Rejecting the State’s opposition, the High Court held that continued liberty of the applicant, subject to strict conditions, would not prejudice the investigation nor pose a risk of absconding or tampering with evidence.
Accordingly, the Court directed that in the event of arrest, the applicant shall be released on anticipatory bail upon furnishing a personal bond and surety, subject to conditions including full cooperation with the GST investigation, non-interference with witnesses, regular appearance before authorities, and abstaining from similar offences in future.
Appearances:
For Applicant : Mr. Palash Soni along with Mr. Vikalp Sharma & Prashant Dansena, Advocate
For Non-Applicant/State : Ms. Anusha Naik, Panel Lawyer
