The Allahabad High Court has modified the bail conditions imposed on a Chinese national accused in a multi-crore GST evasion case after noting that the Chinese Embassy declined to issue a guarantee certificate required under the original bail order.
The bench of Justice Samit Gopal has observed that the accused could instead furnish a personal undertaking before the trial court and periodically disclose her whereabouts, thereby ensuring compliance with the trial process while removing an impossible condition.
The bench passed the order while allowing a criminal modification application, who sought relaxation of two specific conditions contained in the High Court’s earlier bail order dated February 9, 2026.
The bench observed that despite being granted bail several months earlier, the applicant continued to remain in jail solely because she was unable to comply with conditions that depended upon the cooperation of the Chinese Embassy.
Buy Now: GST Judgements E-Compilation – June 2026
The prosecution originates from a complaint filed by the CGST Anti-Evasion Wing and several individuals, including the applicant. According to the department, the company was allegedly manufacturing LED display units at an undeclared facility in Greater Noida while misclassifying the finished products as “cabinets” to avail a lower GST rate.
The investigation alleged that imported components such as cabinets, modules, power supplies, cables and connectors were assembled into complete LED display units attracting GST at 28%, whereas the company allegedly paid tax at only 18% by describing the finished goods differently. The department estimated tax evasion of approximately ₹88.80 lakh for the period between FY 2019-20 and FY 2024-25, although the prosecution also alleged overall GST fraud exceeding ₹11 crore involving the accused persons.
The applicant, a Chinese national, was arrested on August 26, 2025, and remained in judicial custody. She contended that she had joined the company only in February 2024 as a security employee on a monthly salary of ₹15,000, denied involvement in the alleged tax fraud, and sought bail on the grounds that the offences were triable by a Magistrate and carried a maximum punishment of five years.
The High Court had imposed several conditions, including two special requirements owing to the applicant’s status as a foreign national.
The Court directed her to obtain a certificate from the Chinese Embassy guaranteeing her appearance before the trial court and required that information regarding her residence and movement be communicated through the Embassy every two months. The applicant was also prohibited from leaving India without the trial court’s permission.
Seeking modification of these conditions, the applicant informed the Court that she had approached the Embassy of the People’s Republic of China in India in compliance with the bail order.
However, the Embassy expressly declined the request, stating that under its consular functions and powers it was unable to issue any guarantee certificate for bail proceedings. As a result, despite securing bail months earlier, the applicant remained incarcerated because compliance with the conditions had become impossible.
During the hearing, the Union of India placed before the Court a communication from the Foreigners Regional Registration Office (FRRO), Delhi, informing that the applicant had been granted an X-Misc Visa on April 29, 2026, valid until October 28, 2026.
The visa was issued specifically for foreign nationals involved in criminal proceedings who are released on bail and whose presence is necessary for attending court proceedings in India. The visa also carried the endorsement “No Departure Allowed Without Exit Permit,” ensuring that the applicant could not leave India without appropriate permission.
Taking note of the Embassy’s refusal, the applicant’s efforts to comply with the earlier order, and the grant of a valid X-Misc Visa, the High Court held that the original conditions required modification.
The Court substituted the requirement of producing an Embassy guarantee certificate with a simple undertaking by the applicant before the trial court stating that she would appear on every hearing and cooperate in the expeditious conclusion of the trial.
The Court also modified the reporting condition by directing that, instead of routing communications through the Chinese Embassy, the applicant herself would periodically file an affidavit before the trial court every two months informing it of her place of residence and movements within India. The existing restriction prohibiting her from leaving the country without prior permission of the trial court was retained.
The High Court observed that the applicant had genuinely attempted to satisfy the original conditions but was prevented from doing so because the Chinese Embassy refused to provide the requested guarantee certificate. Since the applicant had already obtained an X-Misc Visa specifically designed for foreign nationals facing criminal proceedings and remained subject to travel restrictions, the Court considered it appropriate to replace the impracticable conditions with mechanisms directly enforceable by the trial court.
The modification application was allowed, while all remaining conditions contained in the original bail order were left undisturbed.
CASE HISTORY AT JURIS HOUR
- CHINESE WOMAN HELD IN RS. 9 CRORE GST SCAM: CHATS REVEAL CHINA LINKS; MEERUT COURT HINTS AT INTERNATIONAL SUMMONS
- MEERUT: CGST OFFICIAL ARREST CHINESE NATIONAL AND INDIAN DIRECTOR IN RS. 9 CRORE GST EVASION CASE
- ‘DIFFICULT TO DECLARE ARREST ILLEGAL’: SC DISPOSES PETITION FILED BY HUSBAND OF CHINESE NATIONAL ACCUSED IN RS. 9 CRORE GST SCAM
- CHINESE NATIONAL INVOLVED IN GST EVASION GRANTED BAIL: ALLAHABAD HC
- CGST ASSISTANT COMMISSIONER CITED JUDGEMENTS WITH JUDGE’S NAMES IN AFFIDAVIT: ALLAHABAD HC REPRIMANDS OFFICER
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