Gauhati High Court Grants Interim Bail in GST ITC Fraud Case
The Gauhati High Court has granted interim bail to accused Subrojeet Bhattacharjee in a GST Input Tax Credit fraud case, while arguments focused on the legality of arrests without prior assessment.
GUWAHATI– The Gauhati High Court has granted interim bail to Subrojeet Bhattacharjee, an accused in a GST Input Tax Credit (ITC) fraud case, while hearing arguments concerning the nature of the alleged offence and the procedure followed by the GST authorities in making arrests.
The matter was heard on August 11 before Justice Sanjeev Kumar Sharma. During the hearing, Advocate Amit Goyal, appearing for the accused, argued that several GST and ITC fraud cases have been under investigation for the past several months, with arrests of multiple accused and raids being conducted across the state.
A key issue raised before the court was the classification of offences under the GST law. The defence submitted that where the amount involved is below ₹5 crore, the offence is bailable, while cases involving amounts above ₹5 crore fall under the category of non-bailable and cognizable offences, as argued before the court.
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The defence further contended that the GST department was arresting accused persons without conducting an assessment, arguing that such action was contrary to orders and principles laid down by the High Court and the Supreme Court.
The GST department, however, opposed the relief sought by the accused. The department argued that the accused was allegedly involved in a GST ITC fraud amounting to more than ₹10 crore and was described as a key or alleged mastermind in the case. The department therefore sought rejection of the interim bail plea.
The hearing thus brought into focus a broader legal question concerning the exercise of arrest powers in GST-related fraud investigations, particularly where the department proceeds against an accused before completion of an assessment.
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After hearing the arguments from both sides, the Gauhati High Court granted interim bail to Bhattacharjee and fixed August 14 for the next hearing in the matter.
The case is significant because the court proceedings touch upon the balance between the GST department’s authority to investigate alleged tax fraud and the procedural safeguards available to individuals facing arrest in such cases.
