Daulat Samirmal Mehta Vs Assistant Director (Bombay High Court)
The Bombay High Court allowed a petition challenging an order of the Additional Chief Judicial Magistrate, Explanade, Mumbai, which had refused permission to travel abroad. The petitioner had sought permission to travel overseas for business purposes, but the Magistrate rejected the request on 02 May 2025.
The investigation was initiated by authorities into alleged fraudulent availment and utilisation of Input Tax Credit (ITC) through bogus invoices issued without actual receipt of goods or services. The allegations related to activities of M/s. Alfaraz’ Infra Projects Private Limited. During the investigation, the petitioner, who is the Managing Director of Twinstar Industries Limited and Originet Technologies Limited, was arrested for offences punishable under Section 132(1)(b) and (c) of the Central Goods & Services Tax Act, 2017 . The alleged fraud involved approximately ₹399.92 crore. Prosecution was recommended against several corporate entities, including Twinstar Industries Limited, Boostmetric Solutions Limited, Originet Technologies Limited and Snowcem Paints Private Limited, for allegedly availing and passing ineligible ITC through bogus invoices without actual supply of goods or services.
The petitioner was granted bail by a Division Bench of the High Court on 15 February 2021. As part of the bail conditions, he was required to deposit his passport before the Court. The petitioner subsequently applied for return of the passport and permission to travel abroad. The Magistrate rejected the request on 29 July 2024. The petitioner then approached the High Court, which set aside the Magistrate’s order on 06 January 2025 and directed that the passport be returned. The High Court clarified that if the petitioner intended to travel abroad, he must seek permission from the trial court before departure and file an undertaking that he would not travel without such permission.
