Gujarat HC Grants Bail in GST Non-Remittance Case

Virbhadrasinh Pratapsinh Chauhan Director of Xerxes HR Services Pvt. Ltd. Vs State of Gujarat & Anr. (Gujarat High Court)

In a recent legal development, the Gujarat High Court granted bail to Virbhadrasinh Pratapsinh Chauhan, the Director of Xerxes HR Services Pvt. Ltd., in a case concerning alleged GST violations. The case, which involves significant allegations of non-remittance of tax, highlights key aspects of bail jurisprudence, especially under the Bharatiya Nyaya Suraksha Sanhita, 2023 (BNSS), and the Central Goods and Services Tax Act, 2017.

Background of the Case

Chauhan, the Director of Xerxes HR Services Pvt. Ltd., was implicated in an FIR registered by the Superintendent (AE) Central GST, Gandhinagar, under various sections of the CGST Act, including Section 132(1)(d). The allegations suggest that the company, which provides manpower services to state government agencies, collected tax from clients but failed to remit it to the government. The investigation revealed that while Xerxes HR Services Pvt. Ltd. collected approximately ₹8.90 crores in GST, only a fraction had been deposited.

Defense Claims

Chauhan’s legal representatives argued that he had been falsely implicated, stating that he had no role in the alleged violations. They contended that he had been in custody since July 4, 2024, with no further recovery or evidence required from him, as all requested information had been provided during multiple sessions with the Anti-Evasion Wing of Central GST. They cited his compliance with prior summonses and asserted that his statements had been obtained under duress. Furthermore, they claimed that the accusations were based solely on coerced confessions, and no substantive examination of the seized materials had been conducted.