Premchand Jain Vs Union of India (Rajasthan High Court)
The Rajasthan High Court adjudicated a pre-arrest bail application filed under Section 482 of the BNSS in connection with Criminal Case No. DGGI/INV/GST/574/2025-Gr.I, registered for offences under Sections 132(1), 132(1)(i)(iv) and 132(5) of the Central Goods and Services Tax Act, 2017. The case involves alleged GST evasion amounting to Rs. 20,63,97,337.
Petitioner No.1 is a Director of two companies, and Petitioner No.2, his son, is also a Director in the same entities. The allegation is that, in their capacity as Directors, they evaded GST to the aforesaid extent. The petitioners contended that they were falsely implicated based solely on the statement of a third party and that there was no prima facie material linking them to the alleged offence. It was submitted that out of the alleged tax liability, Rs. 10,38,98,566 had already been deposited, demonstrating bona fide intention. The petitioners also claimed willingness to cooperate and argued that custodial interrogation was unnecessary.
The respondent DGGI opposed the plea, relying on a factual report dated 06.10.2025. It was pointed out that despite interim protection and issuance of summons, the petitioners initially did not appear before the authorities. They appeared only after further directions. Upon appearance, the statement of Petitioner No.1 was recorded. In his statement, he accepted overall responsibility for functioning and decision-making of both companies. He admitted that after initially declining an offer from a trading entity, he later agreed to avail its services due to market pressures. He further admitted that clandestine clearances of TMT bars were facilitated, resulting in GST liability of Rs. 20,63,97,337 calculated at Rs. 42 per kg, of which Rs. 10,38,98,566 had been deposited.
