The Additional Chief Judicial Magistrate, Esplanade, Mumbai, has granted bail to Manish Mulraj Kothari, proprietor of M/s Triliance India, in a case involving alleged wrongful availment of Input Tax Credit (ITC) worth ₹6.85 crore under Section 132 of the Goods and Services Tax (GST) Act, 2017.
The court, presided over by Addl. Chief Judicial Magistrate S.K. Fokmare, took note of the Supreme Court’s guidelines in Nimmagadda Prasad v. CBI (2013) and other similar rulings. While acknowledging the seriousness of economic offences, the court emphasized that bail should not be denied when continued custody serves no further investigative purpose.
The bail application was filed under Section 480 of the Bharatiya Nyaya Sanhita (BNSS), 2023. Kothari had been under arrest since October 7, 2025, following an investigation initiated by the Assistant Commissioner of State Tax, Mazgaon, Mumbai.
According to the prosecution, Kothari, as proprietor of Triliance India, fraudulently claimed ITC on the basis of invoices issued by non-existent or cancelled suppliers without any actual supply of goods or services. The alleged offence pertains to the financial years 2019–20 to 2024–25.
Officials from the Maharashtra GST department (MGST) conducted searches at the applicant’s business premises and seized relevant documents and electronic data. The department contended that the case involved serious economic offences and opposed the bail plea, citing precedents that stress a stricter approach in such cases.
Counsel for the applicant, Dr. Sujay Kantawala, argued that all the necessary documents had already been seized, and custodial interrogation was complete. The case, being based purely on documentary evidence, did not justify continued detention. He also pointed out that appeals against tax demands for FY 2019–20 and 2020–21 had already been filed before the appellate authority.
The court observed, “the accused has been in custody since October 7, 2025. The department has already seized all documentary evidence and completed custodial interrogation. No purpose would be served by keeping the applicant behind bars until the filing of the charge sheet.”
Granting bail, the court imposed several stringent conditions to ensure the accused’s cooperation with the investigation.
Firstly, personal bond of ₹2,00,000 with one or two sureties of the same amount.
Secondly, provisional cash bail of ₹2,00,000 in lieu of surety for two months.
Thirdly, the accused shall not influence or tamper with witnesses or evidence.
Fourthly, must cooperate with the investigation and appear whenever called by the department.
Fifthly, must surrender passport to the GST authorities for six months and seek court permission for foreign travel.
Lastly, must furnish residential address, contact details, and details of two close relatives to the court and department.
Under Section 132 of the GST Act, 2017, offences involving fraudulent ITC claims exceeding ₹5 crore are non-bailable and cognizable, carrying a possible imprisonment of up to five years. However, as noted by the court, such offences are compoundable, allowing settlement on payment of prescribed compounding fees and dues.
Case Details
Case Title: Mr. Manish Mulraj Kothari Versus Assistant Commissioner of State Tax
Case No.: R.A. NO. 840 OF 2025
Date: 18/10/2025
Counsel For Petitioner: Dr. Sujay Kantawala
Counsel For Respondent: Special PP Mr. R. K. Pathak
