The Gujarat High Court has granted regular bail to an advocate accused in a Goods and Services Tax (GST) fraud case involving alleged fraudulent availment and passing of Input Tax Credit (ITC).
The bench of Justice Nikhil S. Kariel has observed that while allegations were serious, the applicant’s role appeared limited and not indicative of being a key conspirator.
The bail application was filed by Rohitkumar Parsotambhai Sanghani under Section 483 of the Bharatiya Nagarik Suraksha Sanhita, 2023, seeking release in connection with an investigation initiated by the Directorate General of GST Intelligence (DGGI), Surat Zonal Unit. The case involves offences under Sections 132(1)(b) and 132(1)(c) of the GST laws, which pertain to fraudulent ITC claims and related offences.
The prosecution alleged that the applicant, acting as a professional, had filed GST returns for firms that were non-existent and created solely for the purpose of passing fraudulent ITC without actual supply of goods.
The Court took note of the applicant’s statement recorded under Section 70 of the GST Act, wherein he admitted awareness that some entities were fake and non-functional, allegedly used to facilitate wrongful ITC claims.
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However, the Court distinguished the applicant’s role as largely limited to compliance-related activities. It further observed that although the financial gain received by the applicant appeared higher than that of a typical consultant, there was no material to suggest that he was a key conspirator or mastermind behind the fraud.
The bench emphasized several crucial factors while granting bail: the investigation in the case had already been completed and the charge sheet filed. The applicant’s role was not central to the alleged conspiracy. The maximum punishment prescribed for the alleged offences. The principle laid down by the Supreme Court in Sanjay Chandra v. Central Bureau of Investigation, which underscores that bail should not be denied as a form of pre-trial punishment.
The Court held that continued incarceration would not serve any useful purpose, especially when the trial is likely to take time.
The Court granted bail subject to strict conditions, including: execution of a bond of ₹50,000 with one surety. Surrender of passport. Restriction on leaving the State of Gujarat without prior court permission. Monthly appearance before the police station for six months. Obligation to not misuse liberty or interfere with the investigation.
The Court also clarified that any breach of these conditions would entitle the Sessions Court to take appropriate action.
Case Details
Case Title: Rohitkumar Parsotambhai Sanghani Versus State Of Gujarat & Anr.
Case No.: R/Criminal Misc.Application (For Regular Bail – Before Chargesheet) No. 2111 Of 2026
Date: 03/03/2026
Counsel For Petitioner: APURVA N MEHTA
Counsel For Respondent: JK SHAH, ADDL. PUBLIC PROSECUTOR
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