Ujjawal Kumar Agarwal Vs State of Assam And 2 Ors (Gauhati High Court)
Bail Granted on Procedural Grounds in Goods and Services Tax Evasion Case
The Gauhati High Court recently granted regular bail to Ujjawal Kumar Agarwal, who was arrested and held in judicial custody under Section 132(5) of the Assam Goods & Service Tax Act, 2017 (AGST Act). The petitioner, represented by Dr. A Saraf, Senior Counsel, challenged the very maintainability of his arrest, arguing that the actual alleged tax evasion amount fell below the statutory threshold for classifying the offence as cognizable and non-bailable.
The application, filed under Section 483 of the Bharatiya Nagarik Suraksha Sanhita, 2023, sought the release of Agarwal, who had been in custody since his arrest on October 8, 2025, in connection with Case No. CT/ENF/ARST/2025/04.
The Petitioner’s Central Argument: Below the Cognizable Threshold
The core of the petitioner’s argument centered on the monetary threshold established under Section 132 of the AGST Act. Dr. Saraf contended that a perusal of the remand application submitted by the respondent authorities—the Finance and Taxation Department—indicated that the alleged offence stemmed from the utilization of ineligible input tax credit (ITC) related to transactions with 12 firms.
According to the documents presented, the total taxable value of these transactions amounted to Rs. 17,73,00,053/-. Applying the 18% tax rate to this value, the learned Senior Counsel calculated the resultant tax evasion amount to be approximately Rs. 3,00,00,000/- (Rupees Three Crores).
