In economic offences, regular bail may be granted if the investigation is complete, the complaint is filed, the maximum punishment is relatively low, and the accused has no criminal antecedents and is not a flight risk.

CAV 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/1011/2025 GR C – 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(6) of the CGST Act, 2017.

2. Rule. Learned APP waives service of notice of Rule on behalf of the Respondent – State, learned Advocate Mr. Utkarsh R. Sharma waives service of notice.

3. Heard learned Senior advocate Mr. Nachiketa Joshi assisted by learned advocate Mr. Chirag A Prajapati appearing for the applicant. Learned Senior advocate Mr. Joshi has submitted that, the applicant has been arrested in connection with the present offence on 12.11.2025 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 09.01.2026. Thus, for the purpose of investigation, the custody of the applicant is no longer required. Mr. Joshi 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. Joshi, the allegations against the applicant is about he having wrongly availed the Input Tax Credits to the tune of Rs.35,08,21,850/-, and that, all the alleged incriminating documents have been seized by the Investigating OfÏcer. 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. Joshi has urged to allow the application and grant regular bail to the applicant as prayed for.

4. Heard learned advocate Mr. Utkarsh R. Sharma appearing for the respondent No.2 – Intelligence OfÏcer 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. Mr. Sharma submitted that, though the applicant’s companies M/s. VLC Industries International India Limited, M/s VLC Interiors India Limited and M/s VLC Commercial India Limited, which were engaged with 08 bogus and non-operational entities, it had not purchased any goods from M/s. Sriji Enterprise, Imphal, M/s. Shree Ganesh Enterprise, Agra, M/s. Ram Enterprise, Karnataka, M/s. Neha Enterprise, Imphal, M/s Ram Sales, Karnataka, M/s Ramdev Enterprise, Delhi, M/s Tirupati Enterprise, Imphal and M/s Yuvaa Enterprise, Imphal whereas, Input Tax Credits amounting to Rs.35,08,21,850 /- were raised. Mr. Sharma has also submitted that, while conducting search at the premises of Mr. Dhruv Kaushik Shah at Flat No. 901, Shubham-2, Challa, Vapi Daman Road, Vapi and M/s Lixel Stationers Private Limited having principal ofÏce at Survey No. 48/3, Somnath Chowk, Gelwad Falia, Nani Daman, Dadra and Nagar Haveli, various incriminating documents incuding fake invoices, rubber, stamps of many entities, details of GSTIN Login/ E-way bill login/Gmail login/linked phone, sim card packets, mobile phones/ numbers connected with various fake units were recovered and seized from the residential premises of Dhruv Kaushik Shah. There are other evidences as well to prove that, the Input Tax Credits were falsely raised by the applicant. The complaint has been filed again