Allahabad HC Grants Bail in Compoundable GST Evasion Case

Nitin Dwivedi Vs State of U.P (Allahabad High Court)

The Allahabad High Court has granted bail to Nitin Dwivedi, who was arrested on charges of GST evasion by allegedly claiming false input tax credit. The court’s decision was based on several factors, including the nature of the offense and the applicant’s willingness to cooperate with the investigation.

The applicant, who has been in custody since June 18, 2025, was charged under Section 132 of the CGST Act. While the Directorate General of GST Intelligence (DGGI) argued that the offense was serious due to its impact on the nation’s economy, the court noted that the offense is compoundable and carries a maximum sentence of five years. A key consideration for the court was a statement made by the applicant after his arrest, in which he expressed a willingness to pay the compounding fee and cooperate with the legal process.

In its decision, the court also took into account the applicant’s lack of any prior criminal history. The court concluded that these facts, along with the applicant’s time already spent in jail, were sufficient grounds for granting bail. The court’s order mandates that Nitin Dwivedi be released on bail after furnishing a personal bond and two sureties, and subject to conditions that he will not tamper with evidence, pressure witnesses, or fail to appear in court.