Vikas Singh Vs Union of India (Allahabad High Court)
In this case, the Allahabad High Court considered a bail application in connection with allegations of fraudulent generation and utilization of fake Input Tax Credit (ITC) under the CGST Act, 2017.
The prosecution alleged that the applicant engaged in systematic generation of fake ITC and issuance of bogus invoices without any actual supply of goods or services. It was further alleged that the applicant used such fake ITC to discharge output tax liability instead of depositing tax collected from a contracting entity, resulting in a wrongful loss to the public exchequer amounting to ₹32.66 crore.
The applicant contended that he was taken by authorities on 16.02.2026 but formally shown as arrested on 18.02.2026 and remanded to judicial custody. It was argued that no custodial remand was sought, indicating that further custodial interrogation was not required. The applicant also raised objections regarding the arrest memo, stating that the grounds of arrest were not properly disclosed, and that the copy provided differed from the original. It was contended that this violated Article 22(1) of the Constitution and reflected non-application of mind, particularly as the memo did not clearly specify the exact offence under Section 132(1) of the CGST Act.
