Azharuddin Vs Union of India (Allahabad High Court)
The case of Azharuddin Vs Union of India before the Allahabad High Court concerned a bail application filed by the applicant, Azharuddin, who was accused of offences under Sections 132(1)(b), 132(1)(c), and 132(1)(i) of the Central Goods and Services Tax (CGST) Act, 2017. The primary allegation against the applicant was the evasion of more than ₹20 crores (approximately $2.4 million) in taxes through fraudulent Input Tax Credit (ITC) .
Applicant’s Arguments
The applicant’s counsel argued that all allegations were false. Crucially, they submitted that the investigation was complete, and the GST department had already submitted its complaint, meaning further detention was not required. They highlighted that the maximum punishment prescribed for the alleged offences is five years, and the applicant had already been in judicial custody for four months since June 13, 2025. Furthermore, the applicant was noted to have no prior criminal history. Based on these facts, the counsel sought the applicant’s release on bail.
GST Department’s Opposition and Court’s Analysis
The counsel for the GST Department opposed the bail application vehemently, asserting that the applicant had committed a huge tax evasion by playing a fraud involving over ₹20 crores. However, the department’s counsel was unable to dispute the key facts presented by the applicant: that the maximum punishment is five years, the investigation is complete, the applicant has been incarcerated for four months, and he has no previous criminal record.
