Vikram Mandhani Vs Union of India (Chhattisgarh High Court)
The case involved a bail application filed under Section 483 of the Bharatiya Nagarik Suraksha Sanhita (BNSS) in connection with alleged offences under Sections 31(1), 35, and 132(1)(b) of the CGST Act, 2017. The prosecution alleged that the applicant was involved in issuing fake invoices amounting to ₹8.57 crore and fraudulently availing Input Tax Credit (ITC) through fictitious firms. The investigation revealed that multiple fake entities were created, and login credentials, Aadhaar cards, PAN cards, SIM cards, and other data were recovered, allegedly linking the applicant to the operation of these entities. It was also alleged that the applicant acted in coordination with a co-accused and facilitated bogus transactions routed through banking channels to give an appearance of genuineness.
The applicant denied the allegations, contending that there was no material to show that he derived any personal benefit from the alleged transactions, which is essential for invoking criminal liability under the CGST Act. It was argued that the alleged benefit, if any, accrued to the co-accused. The applicant further submitted that the case was based on circumstantial evidence, no recovery was made from him, and the charge sheet had already been filed, making further custodial detention unnecessary. Allegations of procedural irregularities, coercion, and selective prosecution were also raised. The applicant highlighted that he had no criminal antecedents, had cooperated with the investigation, and faced personal and medical hardships.
