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Gujarat HC Grants Bail in ₹10 Crore GST Fake ITC Case After 8 Months in Custody

Case Law Details

TaxGuru Citation
2025 taxguru.in 6833
Case Name
Sunil Hiralal Mandowara Vs State of Gujarat & Anr. (Gujarat High Court)
Date of Judgement/Order
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Sunil Hiralal Mandowara Vs State of Gujarat & Anr. (Gujarat High Court)

In a significant development, the Gujarat High Court has granted regular bail to Sunil Hiralal Mandowara, who was arrested in connection with an alleged Goods and Services Tax (GST) fraud. The case, registered by the Directorate General of GST Intelligence (DGGI), Ahmedabad, accuses Mandowara of illegally claiming Input Tax Credit (ITC) worth over Rs. 10 crores.

Mandowara was arrested on December 17, 2024, and had been in judicial custody for approximately eight months prior to the bail order. The court’s decision was delivered in the case of Sunil Hiralal Mandowara vs. State of Gujarat & Anr. The judgment was issued after hearing arguments from both the applicant’s counsel and the GST authorities.

Arguments Presented by the Defense and Prosecution

Mr. Apurva Mehta, the advocate for the applicant, argued that the investigation was complete and a charge sheet had already been filed. He contended that the transactions in question were not fictitious and that Mandowara had genuinely purchased goods from various firms. According to the defense, any subsequent cancellation of the sellers’ GST registrations was due to their own lapses and not the fault of the applicant. Mehta also highlighted that the offense carries a maximum sentence of five years and that his client had already served a substantial period in custody. He emphasized that Mandowara was ready to comply with all conditions imposed by the court.

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Author Info

CA Sandeep Kanoi
Qualification: CA in Job / Business
Company: Taxguru Consultancy
Location: Mumbai, Maharashtra
Articles Published: 20,886

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