Pavan Madanlal Vs Superintendent of Central GST (Telangana High Court)
The Telangana High Court heard a criminal petition filed under Sections 480 and 483 of the Bharatiya Nagarik Suraksha Sanhita, 2023, seeking bail for Accused No.1 in connection with FIR No. GEXCOM/AE/INV/GST/2502/2024-AE registered by the Anti Evasion Wing, Medchal GST Commissionerate, Hyderabad. The case involved alleged offences under Sections 132(1)(b), (c), (f), and (l) read with Section 132(1)(i) of the Central Goods and Services Tax Act, 2017.
According to the allegations, the petitioner and others had availed fake Input Tax Credit (ITC) of Rs.21.89 crores by using incorrect bills. The petitioner was arrested on 28.01.2026 and remanded to judicial custody on 29.01.2026.
Counsel for the petitioner argued that the petitioner was innocent and that the alleged offence was bailable and cognizable. It was also submitted that Accused No.3 had already been granted bail by the trial court, that substantial investigation had already been completed, and that further custodial interrogation was not necessary. Accordingly, regular bail was sought.
The Senior Standing Counsel for CBIC opposed the plea, contending that the offences were not under Section 132(1)(i) alone but also under Sections 132(1)(f) and (l) of the CGST Act, which are non-cognizable and non-bailable. It was further argued that the investigation was still incomplete and that bail should not be granted at that stage.
