The Mumbai Court has granted the bail in Rs. 92 crores Goods and Service Tax (GST) evasion case where the accused was in custody since 17.07.2025.
The S. K. Fokmare (Additional Chief Judicial Magistrate, 19th Court Esplanade, Mumbai) 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 accused/applicant has been in jail since his arrest dated 17.07.2025. The offence in question is triable by this court. No criminal antecedents are found against the accused/applicant. Further physical presence of the accused/applicant does not seem to be necessary for conducting investigation in the crime. Moreover, accused can be directed to co-operate in the investigation as and when required by visiting the office of respondent. Considering the stage of investigation, no purpose would be served by keeping the applicant/accused behind bars till submission of charge-sheet/complaint.
The applicant filed the bail application staging that he is a permanent resident of Mumbai. He is a law abiding citizen. The allegations levelled against the applicant are completely false. He has been falsely implicated in the case. The allegations about availability o f ITC worth Rs. 92.45 crores are false. He was arrested on 17.07.2025. Since then he has been in MCR.
Dr. Sujay Kantawala, the Counsel for the accused contended that, during 26.06.2025 to 07.07.2025 the officers of respondent have thoroughly conducted the search of the business transactions taken place b y the applicant. The officers of respondents have taken all details, documents, evidence, files including electronic evidence from the possession of the applicant.
Dr. Kantawala further contended that the applicant has fully co-operated with the officers of respondent for conducting investigation. It is averred that during aforesaid investigation, the applicant/accused has also deposited an amount of Rs. 1,66,89,405/- tax as per say of respondent. All the documents relating to the alleged offence are with the custody of the department. The custodial interrogation is already completed and therefore now there is no necessity to keep the accused behind bars. The applicant is the sole bread earner of his family. Two minor daughters are dependent upon him. Thus the applicant prayed for the application.
The Assistant Commissioner of State Tax, Mumbai has resisted the application for releasing the accused on bail. It is alleged that the accused is the proprietor of M/s. Heavy Engineering Products and operator of M/s. AK International Engineering which are registered taxpayers under the provisions of CGST and MGST Act, 2017 w.e.f. 01.07.2017 and 30.08.2017 respectively. During investigation it was revealed that, total ITC of Rs. 92.45 crores have been fraudulently availed by the accused.
The court released the Accused Chintan Kirtibhai Shah on bail on his execution P. R. Bond of Rs. 2,00,000 with one or more sureties in like amount. The accused was provisionally released on his furnishing cash bail of Rs. 2,00,000 in lieu of surety for 2 months.
Case Details
Case Title: Chintan Kirtibhai Shah Versus Assistant Commissioner of State Tax
Case No.: R. A. NO. 575 OF 2025
Date: 08.08.2025
Counsel For Applicant: Dr. Sujay Kantawala
Counsel For Respondent: R. K. Pathak
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