Vinay Kumar Tandan Vs Union of India (Chhattisgarh High Court)
Chhattisgarh High Court has granted regular bail to Vinay Kumar Tandan, the authorized signatory of M/s Oviya Traders, who was arrested in connection with an alleged Goods and Services Tax (GST) Input Tax Credit (ITC) fraud amounting to approximately Rs. 10.38 crore. The decision was made after noting the applicant’s prolonged judicial custody and the likely time for the trial’s conclusion.
Tandan was arrested on March 28, 2025, and subsequently charged under Sections 132(1)(b), 132(1)(c), and 132(1)(f) read with Sections 69, 16, 31, 35, 38, 39, 49 & 129 of the Central Goods and Services Tax (CGST) Act, 2017, along with Rule 138 of the CGST Rules, 2017. The case was registered at the Central GST Superintendent, Bhilai.
Allegations and Defense Arguments
According to the prosecution, represented by the Central GST authorities, Bhilai, Vinay Kumar Tandan, through M/s Oviya Traders, fraudulently availed a substantial ITC of around Rs. 10.38 crore. The core of the accusation is that these ITC claims were based on “fake or non-genuine transactions” without any actual movement of goods, leading to a significant loss to the public exchequer. The department further alleged that the firm’s GST registration was canceled retrospectively under Rule 21 due to its non-functioning at the declared place of business, suggesting that the transactions were merely “paper transactions.” Additionally, the retrospective cancellation of GST registrations of some of the firm’s suppliers was cited as evidence of ineligible ITC claims.
