Surat DGGI | Further Investigation Can’t Continue Endlessly: Gujarat High Court Grants Bail In Rs. 43–44 Crore Fake GST ITC Case

The Gujarat High Court has granted bail to an accused in a case involving alleged fraudulent availment of input tax credit (ITC) of ₹43–44 crore, observing that further investigation cannot continue endlessly and its pendency alone cannot justify refusal of bail.

The bench of Justice Hasmukh D. Suthar considered the maximum punishment of five years, the absence of any further recovery or discovery required from the accused, and the time likely to be taken for the trial. The order was passed on October 28, 2026. Buy Now: 210+ GST Judgments E-Magazine – October 2026 The bench directed the applicant’s release on a personal bond of ₹25,000 with one surety of the same amount, subject to conditions protecting the investigation and ensuring his presence during trial.

The applicant approached the High Court under Section 483 of the Bharatiya Nagarik Suraksha Sanhita, 2023, seeking regular bail in proceedings registered by the Directorate General of GST Intelligence (DGGI), Surat Zonal Unit. The case concerned alleged offences under Section 132 of the Central Goods and Services Tax Act, 2017, and Section 132 of the Gujarat Goods and Services Tax Act, 2017, read with Section 20 of the Integrated Goods and Services Tax Act, 2017.