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₹23 Crore Fake GST ITC: Bombay HC Denies Bail
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Bombay High Courttaxcriminal

₹23 Crore Fake GST ITC: Bombay HC Denies Bail

October 10, 2026

Bombay High Court denies anticipatory bail in a ₹23 crore fake ITC case, citing need for custodial interrogation to probe shell companies and fraudulent invoicing.

Bombay HC Denies Bail in ₹23 Crore Fake ITC Case

The Bombay High Court rejected anticipatory bail in a high-value GST fraud case involving allegedly fictitious input tax credit (ITC) claims totalling ₹23 crore. The court found that custodial interrogation was necessary to investigate the operations of suspected bogus firms and the chain of fabricated invoices.

Judges noted the prima facie evidence pointed to a network of non-operational entities engaged in circular trading and issuing invoices without actual supply. Citing public interest and the need to preserve investigative integrity, the court emphasized that

"the accused's presence during questioning is vital to uncover the full modus operandi."

This decision aligns with a growing judicial trend of denying pre-arrest bail in GST fraud cases where large-scale fake invoicing and shell companies are involved. Tax practitioners must advise clients to cooperate proactively with tax authorities where transactions are defensible, especially in high-risk sectors.

Citations

  • Section 438 CrPC
  • Section 69 CGST Act
Practice Areas:taxcriminal

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