Anticipatory bail is a statutory right and custodial interrogation is neither warranted nor provided under the CGST Act

Last updated: 09 December 2021

Save Share

Quick Summary

The Delhi High Court has affirmed that anticipatory bail is a statutory right under the CGST Act, not merely a discretionary one. In a case involving alleged fraudulent Input Tax Credit (ITC) claims, the court granted bail to a company director, stating that custodial interrogation is neither provided for nor warranted under the Act. The ruling emphasised that detaining an individual could harm their business and that bail is the rule, not the exception, aligning with constitutional rights.

Court :
Delhi High Court

Brief :
The Hon'ble Delhi High Court in Tarun Jain v. Directorate General of GST Intelligence DGGI [Bail Appeal No. 3771 of 2021 & CRL.M.A. No. 16552 of 2021 dated November 26, 2021] granted bail to the director of the Company for alleged involvement in fraudulently availing and passing on ineligible/fake Input Tax Credit ("ITC") amounting to INR 72 crores. Held that, anticipatory bail is a statutory right, and detention in judicial custody would affect the assessee's business. Further, allowed the bail application, since the custodial interrogation is neither warranted nor provided under the Central Goods and Services Tax Act., 2017 ("the CGST Act").

Citation :
Bail Appeal No. 3771 of 2021 & CRL.M.A. No. 16552 of 2021 dated November 26, 2021

Daily Limit Reached