Gulam Fareed Vs State of Rajasthan (Rajasthan High Court)
The bail applications were considered by the Rajasthan High Court under Section 483 of the Bharatiya Nagarik Suraksha Sanhita in matters arising from complaints filed by the Directorate General of GST Intelligence for offences under Section 132 of the Central Goods and Services Tax Act, 2017. As both applications involved identical facts and common questions of law, they were decided by a common order.
The prosecution case was that, based on intelligence inputs, CGST authorities detected large-scale GST evasion in the iron scrap trade. The petitioners were alleged to be part of a systematic network engaged in clandestine supply of goods without valid invoices, bills, or e-way bills, resulting in substantial loss to the government exchequer. It was submitted that electronic evidence, statements of accused persons, and other documentary material had been collected during investigation. Complaints had already been filed, and the offences were stated to be non-bailable due to the quantum of alleged tax evasion.
The petitioners argued that they were falsely implicated, that the investigation was initially focused on other individuals, and that evidence relied upon by the Department was inadmissible. They contended that the maximum punishment prescribed was five years, trial would take time, and that they were entitled to bail in view of judicial precedents, including cases where bail had been granted in economic offences. It was also submitted that they had been in custody since February 2025 and that further custodial interrogation was not required.
