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GST Fraud case: HC Allows Bail as Co-Accused Already Released & Custody Prolonged

Case Law Details

TaxGuru Citation
2026 taxguru.in 3641
Case Name
Jagadish Upadhyay Vs Superintendent of Central GST (Telangana High Court)
Date of Judgement/Order
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Jagadish Upadhyay Vs Superintendent of Central GST (Telangana High Court)

The petition was filed by the accused seeking regular bail in connection with an FIR registered by the Anti-Evasion Wing, Medchal GST Commissionerate, Hyderabad, for offences under Sections 132(1)(b), (c), (f), and (l) read with Section 132(1)(i) of the Central Goods and Services Tax Act, 2017. The allegations against the accused and others were that they fraudulently availed input tax credit (ITC) amounting to ₹21.89 crore by using incorrect invoices. The petitioner was arrested on 28.01.2026 and remanded to judicial custody on 29.01.2026.

Counsel for the petitioner argued that the accused was innocent, the offence was bailable and cognizable, and the arrest and detention were improper. It was also contended that another co-accused had already been granted bail and that the material part of the investigation had been completed, making further custody unnecessary. On the other hand, the respondent opposed the bail, asserting that the relevant offences were non-cognizable and non-bailable, and that the investigation was still ongoing.

Upon consideration of the submissions and available material, the Court noted that the petitioner had been in judicial custody since 29.01.2026 and that a co-accused had already been granted bail. The Court also recorded that the investigation was completed. Taking these factors into account, the Court found it appropriate to grant regular bail to the petitioner.

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Author Info

CA Sandeep Kanoi
Qualification: CA in Job / Business
Company: Taxguru Consultancy
Location: Mumbai, Maharashtra
Articles Published: 21,136

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