The Gauhati High Court has granted regular bail to a businessman accused of wrongly availing ineligible Input Tax Credit (ITC) under the Assam Goods and Services Tax (GST) Act, 2017.
The bench of Justice N. Unni Krishnan Nair noted that the petitioner was detained in the matter on 08.10.2025 and is presently in judicial custody and also noticing that the materials as requisite for the purpose have not been set out in manner required by the respondent authorities, the Court is of the considered view that custodial interrogation of the petitioner, herein, may not be called for at this stage. Accordingly, the petitioner is entitled to be released on regular bail.
The petitioner, proprietor of a trading firm based in Tinsukia, had been arrested on October 8, 2025, in connection with Case No. CT/ENF/ARST/2025/04 registered under Section 132(5) of the Assam GST Act. The allegations against him involved the utilisation of ineligible ITC through transactions with twelve firms, with the total taxable value pegged at ₹17.73 crore.
Senior advocate Dr. Ashok Saraf, appearing for the petitioner, argued that even if the alleged tax amount of around ₹3 crore were taken as correct, the offence would remain bailable and non-cognizable since it falls below the ₹5 crore threshold prescribed under the GST Act. He further contended that the arrest authorization issued by the Principal Commissioner of State Tax lacked sufficient material particulars and was based on vague allegations.
The State’s counsel opposed the bail plea, submitting that the investigation was still in its initial stage and that granting bail could prejudice the inquiry.
After hearing both sides, the High Court noted that the petitioner had been in custody since October 8 and that the investigation was primarily documentary in nature. The court observed that “further custodial interrogation may not be necessary at this stage” and directed his release on a bail bond of ₹25,000 with two local sureties.
The petitioner has been directed to cooperate with the investigation, refrain from influencing witnesses, and not leave the jurisdiction of the Chief Judicial Magistrate, Kamrup (Metro), without prior permission. Any violation of these conditions, the court cautioned, could lead to cancellation of bail.
Case Details
Case Title: Ujjawal Kumar Agarwal Versus The State Of Assam
Case No.: Bail Appln./3350/2025
Date: 23/10/2025
Counsel For Petitioner: Dr. Ashok Saraf
Counsel For Respondent: Sc, Finance And Taxation
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