Chhatar Pal Sharma Vs Union of India (Allahabad High Court)
The Allahabad High Court heard an application filed by Chhatar Pal Sharma seeking bail in Case No. 696 of 2024, registered under Sections 132(1)(b), 132(1)(c), and 132(1)(i) of the Central Goods and Services Tax (CGST) Act, 2017, at the Ghaziabad Commissionerate. The applicant, currently in custody since 17 October 2024, is accused of committing GST-related fraud through the alleged creation of shell companies and claiming fake input tax credits totaling approximately Rs. 185 crore. The applicant’s counsel argued that the allegations were false, no shell companies were formed, the investigation had concluded, and the trial was at an initial stage with no prosecution witnesses examined. The counsel also highlighted that the applicant had no prior criminal record and that the maximum punishment for the alleged offences is five years.
The CGST’s counsel opposed bail, emphasizing the serious nature of the allegations, asserting that the applicant had systematically formed shell companies to commit a significant tax fraud, and arguing that economic offences warranted stricter treatment under the law. The counsel stressed that despite the statutory maximum sentence being five years, the gravity of the offence, particularly its impact on society and the economy, justified continued detention.
