Harsh Vinodbhai Patel Vs State of Gujarat (Gujarat High Court)
Gujarat High Court has granted bail to Harsh Vinodbhai Patel, who was arrested in connection with an alleged GST fraud case involving ₹22 crore in input tax credit. The bail was granted under Section 439 of the Code of Criminal Procedure, with the court noting that the investigation had been substantially completed. The case was registered with the Directorate General of GST Intelligence (DGGI) in Ahmedabad under Section 132(1)(c) of the Central Goods and Services Tax Act, 2017, which carries a maximum punishment of five years’ imprisonment.
The petitioner’s counsel, Senior Advocate Nirupam D. Nanavati, argued that the arrest was unlawful as it was not supported by the Commissioner’s “reason to believe” that an offense under Section 132 had been committed. The defense also pointed out that the arrest was authorized by an Additional Commissioner of the Sales Tax Department, which they claimed was procedurally incorrect. Given that Patel had already been in custody for 60 days and that the investigation was complete, the defense sought his release on bail.
The prosecution, represented by the Additional Public Prosecutor and GST Intelligence counsel Priyank Lodha, strongly opposed the bail plea. They argued that Patel was involved in generating fake invoices to avail fraudulent input tax credit and that the investigation was still ongoing. However, the court noted that the case primarily relied on documentary evidence, all of which had already been seized. It also observed that the trial was unlikely to begin soon, reducing the need for Patel’s continued detention.
