The Gauhati High Court has granted bail to a practicing advocate accused of facilitating a multi-crore GST evasion racket by allegedly representing a shell company and assisting in the creation of fraudulent documentation.
While noting the existence of incriminating materials in the case diary, the bench of Justice Susmita Phukan Khaund held that continued custody was not necessary at the present stage of investigation and imposed stringent conditions to ensure cooperation with the probe.
According to the prosecution, the petitioner was allegedly involved in evading GST amounting to several crores of rupees by representing a non-existent or shell company. The investigating agency contended that no actual movement or transfer of goods could be detected during the investigation, indicating that the business transactions were fictitious and designed to facilitate fraudulent GST claims.
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The State further alleged that the advocate played an active role in obtaining signatures on blank papers and collecting Aadhaar and PAN cards of two co-accused persons. These identity documents were allegedly used to implicate the co-accused and further the fraudulent scheme. The prosecution argued that such allegations were supported by incriminating materials recovered during the investigation.
Appearing for the petitioner, counsel argued that the accused is a practicing advocate specializing in GST matters and routinely represents clients before tax authorities. It was submitted that he was merely discharging his professional responsibilities on behalf of a client and had no role in any alleged tax fraud. The defence maintained that the petitioner is innocent and sought his release on bail.
After examining the case diary, the High Court observed that incriminating materials against the petitioner were indeed available. Nevertheless, the Court also took note of the submission that the petitioner is a practicing advocate with a permanent place of residence and is not likely to abscond.
The Court accepted the contention that the petitioner was willing to cooperate with the ongoing investigation and concluded that, at the present stage of the investigation, his continued incarceration was not warranted.
The High Court directed that the petitioner be released on bail upon furnishing a bond of ₹30,000 with one surety of the like amount, subject to the satisfaction of the Chief Judicial Magistrate, Kamrup.
The Court imposed the various conditions. The petitioner must appear before the Investigating Officer every fortnight until completion of the investigation. He must refrain from engaging in activities similar to those alleged in the case. He cannot leave the jurisdiction of the Court without prior permission.
The Court also clarified that any violation of these conditions would automatically result in cancellation of the bail.
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