Bail Granted to accused arrested for availing ineligible ITC of Rs. 9 Crore

Last updated: 24 March 2021

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The Bombay High Court has granted bail to two company officials arrested for allegedly availing ineligible Input Tax Credit (ITC) amounting to over Rs 9 crore. The court found that continued detention was unjustified, particularly as the accused were cooperating with the investigation and had already deposited a significant portion of the alleged dues. The ruling highlighted that potential future tampering with evidence is not sufficient grounds for denying bail when the accused has cooperated fully.

Court :
Bombay High Court

Brief :
The Hon'ble Bombay High Court in Sunil Kumar Jha and Akshay Chhabra v. Union of India &Ors. [Writ Petition (ST) No. 5484 of 2021 & Writ Petition (ST) No. 5486 of 2021, decided on March 11, 2021] granted bail to the accused arrested under Section 69 of the Central Goods and Services Tax Act, 2017 ('CGST Act') for committing offence of availing ineligible Input Tax Credit ('ITC') of INR 9,04,89,054 and issued notice to the revenue department. Held that the arrest made without any formal accusation and continued detention for alleged fake ITC availment, would not be justified when accused is cooperating in investigation.

Citation :
Writ Petition (ST) No. 5484 of 2021 & Writ Petition (ST) No. 5486 of 2021, decided on March 11, 2021

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