1 2025:CGHC:46979 NAFR HIGH COURT OF CHHATTISGARH AT BILASPUR MCRC No. 6555 of 2025 Aman Kumar Agrawal S/o Shri Pradeep Kumar Agrawal Aged About 32 Years R/o House No. 10, Plot No. 10, Phase - I, Magneto Signature Homes, Behind Magneto Mall, Labhandi, District Raipur, C.G. (Address Incomplete Mentioned In The Impugned Order). ... Applicant versus State Of Chhattisgarh Through Deputy Commissioner Of State Tax, New Raipur Division, G S T Bhawan, Center- 19, New Raipur, Atal Nagar, District Raipur, C.G. ... Non-applicant For Applicant : Mr. Anand Shukla, Advocate. For Non-applicant/GST : Dr. Saurabh Kumar Pande Dy. A.G. Hon'ble Mr. Ramesh Sinha, Chief Justice Order on Board 12.09.2025 1. This is the first bail application filed under Section 483 of the Bhartiya Nagarik Suraksha Sanhita, 2023 for grant of regular bail to the applicant who has been arrested in connection with Crime No. Arr. 01/2025 registered at Police Station Deputy Commissioner of State Tax, New Raipur Division, District Raipur (C.G.) offences punishable under Section 69,132(1)(B)(c) of C.G. GST Act 2017. VAIBHAV SINGH Digitally signed by VAIBHAV SINGH Date: 2025.09.15 11:34:24 +0530 2 2. The prosecution is that, the applicant is proprietor of the firm M/s Agastya Enterprises who has been found to have claimed and availed Input Tax Credit of 26.09 crore without actual receipt of goods. ₹ Furthermore, while acting in the capacity of proprietor of another firm, M/s Agrawal Enterprises, the applicant is alleged to have claimed and availed Input Tax Credit of 14.08 crore without actual receipt of goods ₹ or services, by showing purchases from non-existent businesses. Based on the complaint filed by the Deputy Commissioner of State Tax, New Raipur Division, offences under section 69, 132 (1) (B) (C) of CG GST Act, 2017 has been registered against the present applicant. 3. The applicant is innocent and has been falsely implicated in the present case under the CGST Act, 2017. No requisites to establish offences under Sections 69 and 132 are made out, as neither assessment nor quantification of tax liability has been determined, and no loss of 40.14 crore as alleged has been caused to the Government ₹ exchequer. The maximum punishment under the Act is up to five years, yet the mandatory safeguards laid down by the Hon’ble Supreme Court in Arnesh Kumar, Satender Kumar Antil, and Vineet Jain have not been followed. The Prosecution has failed to show that the applicant retained any benefit, no unexplained cash has been recovered, and all offences under the Act are compoundable under Section 138, showing that its object is fiscal and not penal. Various High Courts, including Bombay, Calcutta, and Andhra Pradesh, have held that arrest under the Act cannot be justified without proper assessment, notice, and opportunity of hearing. The investigation is complete, the complaint has already been filed, no further recovery is pending, and the applicant has cooperated throughout. Being a permanent resident with no likelihood 3 of absconding, the applicant is ready to furnish adequate security and abide by all conditions imposed by this Hon’ble Court, therefore, he prays for grant of regular bail to the applicant. 4. On the other hand, the learned counsel appearing for the non-applicant opposed the bail application of the present applicant but could not dispute the fact that the complaint has been filed against the applicant. 5. I have heard learned counsel for the parties and perused the case diary. 6. Taking into consideration the facts and circumstances of the case, and further the fact that the complaint has already been filed against the applicant/accused, and that the applicant has been in jail since 10.06.2025, with the conclusion of the trial likely to take some more time, this Court is of the view that the present applicant is entitled to be released on bail in this case. Accordingly, the bail application filed on behalf of the applicant – Aman Kumar Agrawal, is allowed. 7. If the applicant, Aman Kumar Agrawal, furnishes a personal bond in the sum of Rs.1,00,000/- with one solvent surety to the satisfaction of the concerned Court, he be released on bail involved in Crime No. Arr. 01/2025 registered at Police Station Deputy Commissioner of State Tax, New Raipur Division, District Raipur (C.G.) offences punishable under Section 69, 132(1)(B)(c) of C.G. GST Act 2017. Order shall be in force till disposal of the case. - Sd/- (Ramesh Sinha) Chief Justice vaibhav