The Orissa High Court recently granted bail to an accused in a Goods and Services Tax (GST) fraud case, where he was alleged to have fraudulently availed Rs. 85 crores of Input Tax Credit (ITC).
The Single Bench of Justice G. Satapathy was hearing the accused, who was being prosecuted by the Sub-Divisional Judicial Magistrate, Bhubaneswar, under provisions of the Central Goods and Services Tax Act, 2017.
The accused was implicated under Sections 132(1)(b) (fraudulently availing input tax credit), 132(1)(c) (suppression of facts), 132(1)(f) (wrongfully claiming refund), 132(1)(l) (other offences under the Act), and 132(5) (punishment for such offences) of the CGST Act. These offences are triable by a Magistrate and carry a maximum punishment of five years' imprisonment.
The High Court noted that no material was placed before it to show the accused's involvement in any other similar offence. It further recorded that the petitioner had been in custody since August 2025 and that the complaint had already been filed.
Considering the nature and gravity of the allegations, the period of custody, and the presumption of innocence, the Court granted bail, without expressing any opinion on the merits of the case.
The Court directed the accused to furnish a bond of Rs. 5 lakh with two solvent sureties, subject to terms fixed by the Trial Court. It imposed the further condition that he shall cooperate with the GST authorities if required.
Accordingly, the High Court allowed the bail application.
For the Appellants: H. Panigrahi, Advocate
For the Respondents: J. Panda, Advocate (CGC)