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SC Grants Bail to GST Fraud Accused After Nine Months in Custody

Case Law Details

TaxGuru Citation
2025 taxguru.in 5016
Case Name
Ashutosh Garg Vs Union of India (Supreme Court of India)
Date of Judgement/Order
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Ashutosh Garg Vs Union of India (Supreme Court of India)

Supreme Court of India has granted bail to Ashutosh Garg, who was denied bail in connection with a complaint alleging his involvement in GST input tax fraud. Garg had been accused of setting up fake firms and committing offenses under various sub-sections of Section 132(1) of the Central Goods and Services Tax Act, 2017.

The petitioner, who was arrested on November 2, 2023, had already spent nearly nine months in judicial custody. Bearing in mind that the specific offenses carry a maximum punishment of five years of imprisonment, and considering the significant period of incarceration already undergone by the petitioner, the apex court deemed it inappropriate to keep him in jail any longer.

The Supreme Court directed that Ashutosh Garg be released on bail, subject to terms and conditions to be imposed by the Trial Court. The Special Leave Petition filed by the petitioner was accordingly disposed of.

FULL TEXT OF THE SUPREME COURT JUDGMENT/ORDER

1. The petitioner has been denied bail in connection with a complaint registered against him for offences punishable under Section 132(1)(b), (c), (f), (j) and (l) of the Central Goods and Services Tax Act 2017. The allegation is that the petitioner has set up certain fake firms and is involved in a fraud relating to payment of input tax.

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Author Info

CA Sandeep Kanoi
Qualification: CA in Job / Business
Company: Taxguru Consultancy
Location: Mumbai, Maharashtra
Articles Published: 19,607

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