Somil Agarwal vs. Union Of INDIA

Supplementary affidavit filed today on behalf of the applicant is taken on record.

Heard Sri Nishant Mishra, learned counsel for the applicant and Sri Parv Agarwal, learned counsel appearing on behalf of DGGI.

The instant application has been filed seeking release of the applicant on bail in Case No. 1436 of 2025, under Sections 132(1)(a), 132(1)(c) & 132(1)(i) of CGST Act, DGGI, District Meerut, during pendency of the trial in the court below.

Learned counsel for the applicant submitted that as per allegation applicant by way of illegal means availed and passed on the input tax credit of more than Rs. Nine crore but entire allegations levelled against the applicant are totally false.

He further submitted that in the present matter, applicant is in jail since 27.6.2025 and investigation of the case has been completed and complaint has been filed. He further submitted that alleged offences are triable by judicial magistrate. He further submits, applicant is in custody and in custody he received show cause notice issued by DGGI for adjudication of the matter and unless and until applicant is bailed out, he is unable to reply the show cause notice issued to him.

He further submitted that applicant is having no previous criminal history to his credit.

Per contra, learned counsel for DGGI vehemently opposed the prayer and submitted that applicant is a dishonest person and he by illegal means availed and passed on input tax credit amounting more than Rs. Nine crores but could not dispute the fact that the alleged offences are triable by Magistrate and for the alleged offences maximum punishment of five years has been provided and investigation of the case has been completed and complaint has been filed.

He further could not dispute the fact that in the present matter, applicant is in jail Versus Counsel for Applicant(s) : Nikhil Pandey, Nishant Mishra Counsel for Opposite Party(s) : Parv Agarwal Somil Agarwal .....Applicant(s) Union of India .....Opposite Party(s)

I have heard learned counsel for the parties and perused the record of the case.

However, as per allegation, applicant by way of illegal input tax credit committed the fraud and he received and passed on the amount of more than Rs. Nine crores but it reflects, all the alleged offences are triable by magistrate and maximum punishment for the alleged offences is five years and investigation of the case has been completed and complaint has been filed and in the present matter, applicant is in jail since 27.6.2025. 12. Further, from the record, it also reflects that DGGI issued a show cause notice to the applicant for adjudication of the matter and this Court finds merit in the argument advanced by learned counsel for the applicant that unless and until, applicant is released on bail, he is not able to give effective reply to the show cause notice issued to him.

Further, law is settled that unless proven guilty an accused is deemed to be innocent and bail is a rule while bail rejection is an exception and bail application should not be dismissed either for punitive or preventive purposes.

Therefore, considering the facts and circumstances of the case, discussed above, in my view, applicant is entitled to be released on bail.

Accordingly, without expressing any opinion on the merits of the case, the instant bail application is allowed.

Let the applicant-Somil Agarwal, be released on bail in the aforesaid case on furnishing a personal bond and two sureties each in the like amount to the satisfaction of the court concerned with the following conditions:- (i) The applicant shall appear before the trial court on the dates fixed, unless his personal presence is exempted. (ii) The applicant shall not directly or indirectly, make inducement, threat or promise to any person acquainted with the facts of the case so as to dissuade him from disclosing such facts to the Court or any police officer or tamper with the evidence. (iii) The applicant shall not indulge in any criminal and anti-social activity.

In case of breach of any of the above condition, the prosecution will be at liberty to move an application before this Court for cancellation of the bail of the applicant.

It is clarified that the observations made herein are limited to the facts brought in by the parties pertaining to the disposal of bail application and the said observations shall have no bearing on the merits of the case during trial. October 8, 2025 Ankita (Sameer Jain,J.) ANKITA SRIVASTAVA High Court of Judicature at Allahabad