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

1. This is the first bail application filed under Section 483 of the Bharatiya Nagarik Suraksha Sanhita, 2023 (for short ‘BNSS’) for Deputy Commissioner State Tax, GST Department, CBD- Bhawan, Sector -21, Naya Raipur, Atal Nagar (C.G.) for the offences punishable under Sections 132(1)(b), 132(1)(c) and 132(1)(प) of GST Act, 2017.

2. Brief facts, as per the case of prosecution, during investigation, it was found that the applicant, being the proprietor of M/s Aadeshwar Trade Link, had allegedly created a network of bogus/non-existent firms with an intention to facilitate the transfer of Input Tax Credit (ITC) to other businesses. It is further alleged that the applicant claimed and availed ITC of approximately Rs. 8.22 crores without actual receipt of goods and failed to produce any document to establish the genuineness of the said ITC. The invoices/bills issued by the applicant to the recipients reflected tax liability of more than Rs. 11.36 crores, whereas the disputed ITC exceeds Rs. 8.22 crores, thereby causing substantial loss of revenue to the Government. It is further alleged that the applicant committed an economic offence and did not cooperate with the investigation, which is still pending.

3. Learned counsel for the applicant submits that the applicant is the proprietor of M/s Aadeshwar Trade Link and is in jail since 23.06.2026. He further submits that the offences under the CGST Act are compoundable under Section 138 of the Act, 2006. He would further contend that the Hon’ble Supreme Court, in similar matters relating to economic offences, has granted bail to the accused considering the nature of the allegations and the circumstances of the respective cases. He further submits that a co- ordinate Bench of this Court has granted regular bail in identical case to a co-accused in MCRC No. 6572/2026 vide order dated 31.08.2026. He also submits that the investigation is primarily based on documentary evidence, which is already in the custody of the prosecution and therefore, there is no possibility of tampering with the evidence. Accordingly, he prays for grant of regular bail to the applicant.

4. On the other hand, learned State counsel opposes the prayer for grant of bail and submits that the applicant, being the proprietor of M/s Aadeshwar Trade Link, created a network of bogus/non- existent firms and fraudulently claimed and availed ITC of approximately Rs. 8.22 crores without actual receipt of goods, causing substantial loss of revenue to the Government. He further submits that the investigation is still pending and the applicant has not cooperated with the same. Therefore, looking to the nature and gravity of the economic offence, he prays for rejection of the bail application

5. I have heard learned counsel for the parties and perused the case- diary and material available on record.

6. Considering the facts and circumstances of the case, nature of the allegations, the fact that the applicant is in jail since 23.06.2026 and that the investigation has culminated in filing of the charge-sheet, coupled with the fact that the Hon’ble Supreme Court has granted bail in similar matters and a co-ordinate Bench of this Court has also granted bail to an accused in MCRC No. 6572/2026 vide order dated 31.08.2026, I am inclined to grant regular bail to the applicant.

7. Accordingly, the bail application is allowed.

8. If the applicant, Adeshwar Chauradiya, furnishes a personal bond in the sum of Rs. 50,000/- with one solvent surety to the satisfaction of the concerned Court, he be released on bail, involved in Crime No. 04/2026 registered at Police Station –Deputy Commissioner State Tax, GST Department, CBD- Bhawan, Sector -21, Naya Raipur, Atal Nagar (C.G.) for the offences punishable under Sections 132(1)(b), 132(1)(c) and 132(1)(प) of GST Act, 2017. Order shall be in force till disposal of the case.