Rs. 10cr GST ITC Fraud: Chhattisgarh HC Grants Bail to Accused Noting Prolonged Custody and Ongoing Trial [Read Order]

₹10 Crore GST ITC Fraud: Chhattisgarh High Court Grants Bail to Accused

The Chhattisgarh High Court has granted bail to an individual accused in a Goods and Services Tax (GST) Input Tax Credit (ITC) fraud case involving approximately ₹10 crore. The decision comes after considering the accused’s prolonged period of custody and the fact that the trial is still underway.

Reasoning Behind the Bail Grant

The High Court bench, while acknowledging the seriousness of the allegations and the ongoing investigation, determined that continued incarceration was not warranted at this stage. The court noted that the accused had already spent over three months in jail. This period of custody, coupled with the drawn-out nature of the trial, likely influenced the court’s decision.

Details of the Alleged Fraud

The case revolves around allegations of fraudulent availing of Input Tax Credit (ITC) under the GST regime. Such fraudulent activities pose a significant threat to the Indian economy by undermining the GST system and leading to revenue losses for the government. Authorities are actively cracking down on such cases across the country.

Implications for GST Enforcement

This case highlights the challenges faced by enforcement agencies in prosecuting GST-related offenses. While the judiciary is committed to upholding the law, it also balances the rights of the accused, including the right to a speedy trial and freedom from prolonged detention without conviction.