Chhattisgarh HC Grants Bail in ₹8.22 Crore GST ITC Case under Section 483 BNSS

Adeshwar Chauradiya Vs State of Chhattisgarh (Chhattisgarh High Court)

Summary: The Chhattisgarh High Court considered the first bail application filed by Adeshwar Chauradiya under Section 483 of the Bharatiya Nagarik Suraksha Sanhita, 2023 in connection with Crime No. 04/2026 registered at the office of the Deputy Commissioner, State Tax, GST Department, CBD-Bhawan, Sector-21, Naya Raipur, Atal Nagar, Chhattisgarh. The applicant, proprietor of M/s Aadeshwar Trade Link, was accused of creating a network of bogus or non-existent firms allegedly for facilitating transfer of Input Tax Credit (ITC) to other businesses. According to the prosecution, the applicant allegedly claimed and availed ITC of approximately ₹8.22 crores without actual receipt of goods and failed to produce documents establishing the genuineness of the ITC. The invoices and bills issued by the applicant allegedly reflected tax liability exceeding ₹11.36 crores, resulting in substantial alleged revenue loss to the Government. The applicant had remained in custody since 23.06.2026. On his behalf, it was submitted that the offences under the GST Act were compoundable, that the applicant had relied upon documentary evidence already in the custody of the prosecution, and that there was no possibility of tampering with the evidence. Reliance was also placed upon bail granted by the Supreme Court in similar economic-offence matters and upon the order dated 31.08.2026 passed by a co-ordinate Bench in MCRC No. 6572/2026. The State opposed bail, citing the nature and gravity of the alleged economic offence, alleged revenue loss and the applicant’s alleged non-cooperation with the investigation. The Court considered the nature of the allegations, the period of incarceration, the fact that the investigation had culminated in filing of the charge-sheet, and the bail granted in similar matters and by the co-ordinate Bench. The Court consequently allowed the bail application and directed release of Adeshwar Chauradiya upon furnishing a personal bond of ₹50,000 with one solvent surety. The order was directed to remain in force till disposal of the case. ([LawLens][1])

Cases Discussed

FULL TEXT OF THE JUDGMENT/ORDER OF CHHATTISGARH HIGH COURT