The Mumbai Court has granted the bail to the accused, Hanumant Baburao Ekwade of fraudulently availing GST ITC worth Rs. 17.70 crores.
The bench of S. K. Fokmare (Addl. Chief Judicial Magistrate) has observed that the power to prosecute the tax payer under GST Act are ancillary and incidental to the power to levy and collect Goods and Services Tax. The offence in question is triable by this court. Subject to certain restrictions the offences under GST Acts are of compoundable nature. During pendency of investigation accused for showing his bonafide has voluntary made payment of tax amount of Rs. 20 lacs. The accused/applicant, Hanumant Baburao Ekwade is in jail since his arrest dated 28.08.2025. It is for the GST department to conduct an investigation in detail. It will take time to complete the investigation and to file the complaint. Further physical presence of the accused/applicant does not seem to be necessary for conducting investigation in the crime.
The applicant is a permanent resident of Thane. He is proprietor of M/s. Hanuman Steel company which is engaged in the business of trading of alloy steel, scrap etc. It is averred that the applicant has maintained its books of accounts as per law and has paid the relevant tax regularly. The applicant has not done any illegal business of availment of fraudulent ITC. There is no criminal antecedents against the accused. Since the month of June, 2023 the officers of MGST have been investigating the matter. Since the beginning the applicant/accused is co-operating the investigation.
The Assistant Commissioner of State Tax, Mumbai has resisted the application for releasing the accused on bail. It is alleged that, the accused is involved in fraudulently availing ITC of Rs. 17.70 crores. It is alleged that the accused has not maintained books of accounts at the place of business. The accused has availed the GST fraudulently from non genuine suppliers, non existing business entities. It has been contended that despite receiving DRC-01A notice dt. 30.05.2025 the accused has not made any lawful compliance regarding the same. It has been contended that the investigation is in progress.
The court released the accused Hanumant Baburao Ekwade on bail on his execution P. R. Bond of Rs. 2,00,000 with one or more sureties in like amount. The Accused shall be provisionally released on his furnishing cash bail of Rs. 2,00,000 in lieu of surety for 2 months.
Case Details
Case Title: Hanumant Baburao Ekwade V/s. Assistant Commissioner of State Tax
Case No.: R. A. NO. 698 OF 2025
Date: 26.09.2025
Counsel For Applicant: Advocate Roshil Nichani
Counsel For Respondent: Special PP Mr. R. K. Pathak for GST
Read More: FinMin Constitutes of RODTEP Committee 2025
