Devendra Surana Vs Union of India and another (Telangana High Court)
Telangana HC Grants Anticipatory Bail Because GST ITC Case Was Based on Documentary Evidence; Anticipatory Bail Allowed in GST ITC Matter Because Purchases Were Supported by Invoices and Bank Records; Custodial Interrogation Not Necessary in Documentary GST Dispute, Says Telangana HC; Telangana HC Grants Pre-Arrest Bail Because Supplier Was GST Registered During Transactions; GST ITC Bail Granted After Court Notes Cooperation With Investigation and ₹17.5 Crore Deposit; Telangana HC Says Economic Offence Alone Does Not Justify Arrest in GST ITC Probe; Pre-Arrest Bail Granted in GST Case Because Transactions Were Through Banking Channels.
The Telangana High Court granted anticipatory bail to the petitioner in a case involving alleged wrongful availment of Input Tax Credit (ITC) amounting to approximately ₹97.25 crore under the CGST Act. The petitioner, Managing Director of M/s. Bhagyanagar India Limited, was accused in proceedings initiated by the Directorate General of GST Intelligence (DGGI), Hyderabad Zonal Unit.
According to the case records, the petitioner’s company purchased copper scrap from M/s. AMZ Traders after conducting KYC verification and compliance checks. Between November 2022 and March 2023, the company carried out 153 transactions worth around ₹97.25 crore. The transactions were stated to be supported by invoices, e-way bills, transport records, and banking transactions. Subsequently, proceedings under Section 70 of the CGST Act were initiated alleging wrongful availment of ITC after the supplier’s GST registration was retrospectively cancelled.
