Vikas Naresh Chandra Kansal Vs State of Gujarat & Anr (Gujarat High Court)
The Gujarat High Court delivered its order in the case of Vikas Naresh Chandra Kansal vs. State of Gujarat & Anr., concerning an application for regular bail under Section 483 of the Bharatiya Suraksha Sanhita, 2023. The bail application was filed in relation to a complaint registered by the Directorate General of Goods and Services Tax Intelligence (DGGI), Ahmedabad Zonal Unit, for alleged offences punishable under Sections 132(1)(a), (b), and (c) of the Central Goods and Services Tax Act, 2017 (CGST Act).
The complaint alleged that Universal Enterprises, a partnership firm in which the applicant was a partner, had not paid Goods and Services Tax (GST) amounting to ₹4.37 crore. Additionally, it was alleged that VNG Packaging Pvt. Ltd. failed to deposit ₹4.99 crore towards GST. The DGGI treated the total alleged unpaid tax as a consolidated sum of ₹9.34 crore.
According to the case record, searches were conducted by the DGGI at the applicant’s business premises between August 22, 2025, and August 28, 2025. During the search operations, officials seized documentary and electronic evidence and prepared panchnamas upon completion of the proceedings. Searches were also carried out at multiple premises linked to the applicant’s family members. After the search and seizure process, DGGI issued summons to the applicant under Section 70 of the CGST Act to appear for recording of his statement on August 28, 2025. However, the applicant was arrested on August 26, 2025, allegedly without the authority forming the necessary “reason to believe” required under Section 69 of the CGST Act. The applicant contended that he was initially treated as a witness and that his arrest was premature and unwarranted.
