Section 132 of the CGST Act, 2017 —–Bail —- The applicant sought regular bail. A search was conducted during the period from 20.07.2022 to 28.07.2022, and on 28.07.2022, the applicant was arrested, alleging that ITC of Rs.10.71 crores in respect of fictitious transactions amounting to Rs.59.55 crores was availed by him. The Counsel for the applicant submitted that while arresting the applicant, the mandatory procedure of section 69 of the Act has not been followed; the allegation of availing wrongful ITC is without any basis and contrary to the evidence; the documentary evidence for the purchase of goods including transportation details had been provided by the applicant, which suggests that there was a movement of goods; the provisional attachment of property under section 83, includes plant & machinery, vehicle and stock, which are assessed by the department as Rs.6,17,21,463/-; and further the applicant has made payment of Rs.50 Lakhs on July, 2022; the complaint has been filed on 22.09.2022. The court observed that fraudulent ITC claim has created huge liability for the government, but equally it is necessary that the accused gets an opportunity to defend his case. The department has made necessary investigation and collected documentary evidence through the applicant himself and those supported documents has been produced with the complaint before the Chief Judicial Magistrate. The department has already attached the property under section 83 which is valued as Rs.6,17,21,463/-. Further the amount of Rs.50 Lakhs has been paid by the applicant and if necessary under subsection (1) of section 138 of the Act, the Commissioner would have all the authority to compound the offence on payment being made by the alleged accused. Further custody of the applicant does not appear to be necessary, as sufficient time for the investigation was taken prior to filing of the complaint by the department.

Held that:- The Hon’ble High Court allowed the application subject to certain conditions.