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SC Allows Bail After Long Detention Despite Alleged High Tax Loss in GST Case

Case Law Details

TaxGuru Citation
2025 taxguru.in 11408
Case Name
Vipin Garg Alias Bindu Vs State of Haryana (Supreme Court of India)
Date of Judgement/Order
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Vipin Garg Alias Bindu Vs State of Haryana (Supreme Court of India)

The appellant was arrested on allegations of misuse of input tax credit under the Central Goods and Services Act, 2017, and has remained in custody since 27.01.2022. A co-accused had already been granted bail on 29.06.2022. It was submitted on behalf of the appellant that the charge-sheet has been filed. The State opposed bail on the ground that the alleged loss to the exchequer is approximately six crores and no recovery has been made. The Supreme Court held that apart from this submission, no reason justified the appellant’s continued detention during trial, particularly since the State had not challenged the bail granted to the co-accused.

The Court set aside the order under appeal and directed that the appellant be released on bail on terms and conditions to be fixed by the Trial Court. The appellant was directed not to delay the trial and to remain present regularly. The appeal was allowed with no order as to costs, and leave was granted.

FULL TEXT OF THE SUPREME COURT JUDGMENT/ORDER

Heard learned counsel appearing for the parties.

The appellant (Vipn Garg) has been arrested primarily on the allegation of misuse of input credit under the Central Goods and Services Act, 2017. He is in detention since 27.01.2022. A co-accused has already been enlarged on bail, on 29.06.2022 as submitted on behalf of the appellant. It has been pointed out on behalf of the appellant that charge-sheet has been submitted. Resisting the plea for bail, Mr. Deepak Thukral, Deputy AG of Haryana submitted that the loss to the exchequer caused by the accused persons is to the extent of rupees six crores and no recovery has as yet been made. But for this reason above, we do not think further detention of the appellant pending trial is necessary. The State has not filed any petition for special leave to appeal in regard to the co-accused who has been enlarged on bail by the High Court.

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Author Info

CA Sandeep Kanoi
Qualification: CA in Job / Business
Company: Taxguru Consultancy
Location: Mumbai, Maharashtra
Articles Published: 21,218

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