Akram Pasha Vs Senior Intelligence Officer (Karnataka High Court)
Karnataka High Court held that custodial interrogation in the matter of fraudulent availment and passing of fake Input Tax Credit is not warranted by the statue and hence anticipatory bail application allowed with some conditions.
Facts- This petition is filed by the petitioner/accused u/s. 482 of BNSS praying to grant anticipatory bail in case of his arrest, pursuant to summons dated 10.10.2025 issued u/s. 70 of the Central Goods and Services Act, 2017. It is contested that the offence alleged is u/s. 132(1)(b)(c) of CGST Act and the maximum sentence that can be imposed for the offence alleged is imprisonment for five years and fine. Accused No.1 came to be arrested and charge sheet has been filed against him and as per the table in the charge sheet tax due is Rs.21,64,35,395/-.
Conclusion- Held that in the present case, the petitioner has been accused of wrongly utilizing input tax credit amounting to Rs.31,62,57,181/- under Section 132(1)(b) and (c). Since the alleged amount exceeds Rs.500 lakhs, the accused can be punished maximum for five years of imprisonment and with fine. Also Sectoin 138 of the Act states that the offences under the Act shall be compoundable either before or after the prosecution. It is very well possible that the respondent – Department might get the information as required if the petitioner co-operates with the authorities concerned and arrest might not be necessary. The custodial interrogation in the instant matter is neither warranted nor provided for by the statute. Detaining the petitioner in judicial custody would serve no purpose rather would adversely impact the business of the petitioner. In view of these facts and circumstances and in light of the provisions of law, this Court is inclined to allow the anticipatory bail application with some conditions.
