Aniket Sovasaria Vs Union of India And 2 Ors (Guwahati High Court)
In a significant ruling, the Guwahati High Court granted bail to Aniket Sovasaria, accused in a Goods and Services Tax (GST) evasion case involving ineligible Input Tax Credit (ITC) worth approximately Rs. 6.12 crores. The decision, delivered in the case of Aniket Sovasaria Vs Union of India And 2 Ors, primarily hinged on procedural lapses by the investigating agency, particularly the absence of a mandatory notice and a lack of “reason to believe” for the arrest.
Sovasaria, a partner in M/s Aadi Enterprises and M/s Trident Consulting, was arrested on January 23, 2025, in connection with Case No. DGGI/INT/INTL/34/2025, filed under Section 132(1)(C) of the CGST Act, 2017, read with Section 20 of the IGST Act, 2017. The allegation against him was the passing on of ineligible ITC without actual supply of goods. He had been in judicial custody for 98 days prior to the bail hearing.
Mr. A. Goyal, counsel for the petitioner, argued that Sovasaria’s arrest was unlawful as the investigating agency, Respondent No. 3, failed to issue a notice under Section 35 of the Bharatiya Nagarik Suraksha Sanhita (BNSS), 2023 (formerly Section 41A of Cr.PC). This section mandates the issuance of a notice for offences punishable up to seven years of imprisonment. Given that the maximum sentence under Section 132(1) of the CGST Act, 2017, is five years with fine, the issuance of such a notice was deemed compulsory.
