Delhi High Court Grants Interim Protection From Arrest To Man In GST ITC Fraud Probe

The Delhi High Court has granted interim protection from arrest to a man accused of wrongful availment, utilisation and passing on of Input Tax Credit (ITC) through two firms in a Goods and Services Tax (GST) fraud investigation.

Justice Mini Pushkarna directed that no coercive steps be taken against the Petitioner, subject to his joining the investigation conducted by the Anti-Evasion Wing of the Central Goods and Services Tax (CGST) Department.

The Court has sought a reply and status report from the GST Department and listed the matter for further hearing on November 26.

Petitioner approached the High Court seeking anticipatory bail in connection with an investigation into the alleged wrongful availment, utilisation and passing on of ITC through M/s KB Infra and M/s KB Enterprises.

His counsel submitted that he had joined the investigation on earlier occasions and had already appeared before the department. The counsel also informed the Court that Petitioner had deposited ₹99 lakh.

Reliance was placed on the Supreme Court's judgment in Radhika Agarwal v. Union of India, wherein the Court had recognised the right to seek anticipatory bail in cases involving the CGST Act.

Petitioner's counsel also referred to the recommendations made at the 57th GST Council meeting concerning the removal of arrest powers under the CGST Act.

Opposing the anticipatory bail plea, the GST Department submitted that summons had been issued on October 8, 2026, after an order was passed by the Trial Court.

The Department alleged that Petitioner had not disclosed the issuance of the summons and had failed to cooperate with the investigation.

For Petitioner: Advocate Anurag Ojha, Sr. Standing Counsel (Through VC)

For Respondent: Advocate Anjali Jha Manish, Ms. Priyadarshi Manish, Mr. Saurav Rai, Mr. Kshitiz Kishor Rai and Mr. Maninder Singh, Advs.