The court granted regular bail based on the completion of the investigation, the duration of the applicant's custody, and the maximum punishment of five years, applying the standard criteria of prima-facie case, availability of the accused, and risk of tampering.

ORAL ORDER

1. The applicant has filed this application under Section 483 of the Bharatiya Nagarik Suraksha Sanhita, 2023 for enlarging the applicant on regular bail in connection with the offence registered vide File No.DGGI/INT/INTL/781/2025 GR 1 – O/o ADG – DGGI – ZU – SURAT for the offence punishable under Sections 132(1)(i) of the Central Goods and Services Tax Act, 2017 read with Section 132(5) of the CGST Act, 2017.

2. Rule. Learned APP waives service of notice of Rule on behalf of the Respondent – State, learned Advocate Ms. Ketki Jha waives service of notice.

3. Heard learned Advocate Mr. Dax Solanki with learned Advocate Mr. Viken Shah appearing for the applicant. Mr. Solanki has submitted that, the applicant has been arrested in connection with the present offence on 11.11.2025 and since then, he is in judicial custody. The respondent authorities have concluded the investigation and a necessary complaint has also been lodged against the applicant on 08.01.2026. Thus, for the purpose of investigation, the custody of the applicant is no longer required. Mr. Solanki has further submitted that, considering the punishment prescribed for the offence in question which is a maximum period of 5 years, the Court should exercise discretion in favour of the applicant. According to Mr. Solanki, the allegations against the applicant is about he having wrongly availed the Input Tax Credits to the tune of Rs.18.92 crores, and that, all the documents have been seized by the Investigating Officer. The entire case pertains to documentary evidence. It is further contended that, the applicant is ready and willing to abide by all the conditions that may be imposed by the Court, while being released on bail. Thus, Mr. Solanki has urged to allow the application and grant regular bail to the applicant as prayed for.

4. Heard learned advocate Ms. Ketki Jha appearing for the respondent No.2 – Intelligence Officer Directorate General of Goods and Service Tax Intelligence, who has drawn the attention of the Court towards the reply which has been filed by the respondent No.2. Ms. Jha has submitted that, though the applicant’s company M/s. New Nalbandh Traders, which was engaged with bogus and non-operational entities, it had not purchased any goods from M/s. Avatar Enterprise, Surat, M/s. Alveera Corporation, Surat, M/s. Mahimna Allous, Surat and M/s. Five Star Ispat Pvt. Ltd. whereas, Input Tax Credits amounting to Rs.18,92,43,969/- were raised. Ms. Jha has also submitted that, while conducting search at the premises of M/s. New Nalband Traders, at Surat, the details of goods lying at the said premises were not provided, however, incriminating documents pertaining to purchase of scrap in cash without paying GST were seized. There are other evidences as well to prove that, the Input Tax Credits were falsely raised by the applicant. The complaint has been filed against the applicant under the special law and the offence being economic in nature causing loss of revenue to the State. Accordingly Ms. Jha has urged the Court to reject the bail application. Ms. Jha has also submitted that, the applicant be put to terms whereby, he be directed to deposit some amount in the Court.

5. Learned APP Mr. Dhawan Jayswal for the respondent – State while opposing the present application has adopted the arguments advanced by learned advocate Ms. Ketki Jha for the respondent No.2.

6. Having considered the submissions of the either advocates for the parties and upon having perused the record of the case, it appears that, the investigation is over and complaint has been lodged by the respondent No.2 – authority before the Competent Court at Surat, vide Criminal Case No.1501 of 2026. As per the prosecution case, the applicant herein had wrongly availed the benefit of Input Tax Credits to the tune of Rs. 18,92,43,960/- by buying goods in cash without payment of GST. Having regard to the punishment prescribed to the offence being that of a maximum