Union of India Vs Shashi Kumar Choudhary (Gauhati High Court)
Gauhati High Court held that arrest in fraudulent availment of Input Tax Credit [ITC] cannot be termed as illegal since the arresting authority has complied with all the mandates provided by the CGST Act, 2017 and the BNSS, 2023.
Facts- This application has been filed u/s. 438 read with Section 528 and Section 442 of the BNSS, 2023, assailing the order dated 07.06.2025, passed by the learned Chief Judicial Magistrate (CJM), Kamrup (M), Guwahati, vide order dated 07.06.2025 for not mentioning of the heading “Section 47 of BNSS” in Ground of Arrest and “Section 48 of BNSS” in the Notice to the Relative, as well as for not providing the Grounds of Arrest to the relative of the respondents.
Read SC Judgment in this case: SC Restored Bail Due to Limited Need for Custodial Interrogation in GST Fraud Case
The case as has been projected in the petition is that the respondent no. 1 (Sashi Kumar Choudhury) is involved in fraudulent availment of Input Tax Credit (ITC) of Rs. 8.27 crores during the financial year 2024-2025 in the name of the firm, namely, M/s S. K. Enterprise and the respondent no. 2 (Ankit Choudhury) is involved in fraudulent availment of ITC of Rs. 8.26 crores during the Financial Year 2024-2025 in the name of the firm, namely M/s Ankit Enterprise. A case was registered u/s. 132 (1) (c) of the Central Goods and Services Tax Act, 2017 and the accused persons were arrested on 05.06.2025 on allegations of fraudulent availment of ITC amounting to Rs. 8.27 crores and Rs. 8.26 crores respectively.
