Case Law Details
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.
FULL TEXT OF THE ORDER OF ALLAHABAD HIGH COURT
1. Heard Sri Shashank Pandey, learned counsel for the applicant, Sri Satyendra Srivastava, learned Additional Government Advocate for the State and Sri S.M. Singh Royekwar, Advocate who has put in appearance on behalf of the Directorate General of GST Intelligence.
2. The instant application has been filed seeking release of the applicant on bail in FIR/Case Crime No. DGGI/INV/GST/1349/Gr-H/2025, under Section 132 CGST Act, registered at Police Station DGGI, District Lucknow.
3. The applicant has been arrested on 18.06.2025 on the allegation of evasion of GST by claiming false input tax credit.
4. The learned counsel for the applicant has submitted that the offence is compoundable offence and it carries a maximum offence of imprisonment up to five years and fine.
5. In the statement of the applicant after his arrest he has given an undertaking to cooperate with the investigation/trial and has expressed his willingness to pay compounding fee.
6. Although, the learned counsel for the Directorate General of GST Intelligence has filed a counter affidavit opposing the bail application and Sri Royekwar, the learned counsel has opposed the bail application submitting that the applicant is guilty of evasion of payment of tax, which is an offence against the public at large as it affects growth of economy of the offence and as per him the offence is heinous and serious in nature keeping in view its wide impact on the economy of the nation, however, he could not oppose the fact that the offence is compoudable.
7. In the affidavit filed in support of bail application it has been stated that the applicant is innocent, he has been falsely implicated in the present case and he has no criminal history.
8. Having considered the aforesaid facts and circumstances of the case and keeping in view the fact that the offence in question is punishable with maximum sentence of imprisonment up to five years and it is compoundable and the learned counsel for the applicant has stated that the applicant is willing to get the offence compounded after paying the liability of GST along with penalty; that the applicant has no previous criminal history and he is languishing in jail since 18.06.2025 and without making any observation, which may affect the merits of the case, I am of the view that the aforesaid facts are sufficient for making out a case for enlargement of the applicant on bail in the aforesaid crime.
9. Accordingly, this bail application stands allowed.
10. Let the applicant-Nitin Dwivedi be released on bail in the aforesaid case on furnishing a personal bond and two sureties each in the like amount to the satisfaction of magistrate/court concerned, subject to following conditions:-
(i) the applicant shall not tamper with the prosecution evidence;
(ii) the applicant shall not pressurize the prosecution witnesses;
(iii) the applicant shall appear on each and every date fixed by the trial court, unless his appearance is exempted by the learned trial court.
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