Avnish Jaiswal vs. The Union Of INDIA

Facts

The petitioner, Avnish Jaiswal, is an accused in Complaint Case No. 3207 of 2025, pending before the Special Judge, Economic Offences, Jamshedpur. The case involves alleged offences under Sections 132(1)(b), 132(1)(c), 132(1)(f), and 132(1)(1) & 132(5) of the Central Goods and Service Tax Act, 2017, and Sections 61, 316, and 322 of the B.N.S., 2023. The petitioner is accused of evading GST amounting to Rs. 31.00 crores for various financial years. A prosecution report has been filed. The petitioner has been in custody for approximately three months.

Held

The Court considered the period of custody undergone by the petitioner, which was approximately three months. The Court also noted the maximum punishment prescribed for GST evasion under the Central Goods and Service Tax Act, 2017. Balancing these factors, the Court found it inclined to release the petitioner on bail. The reasoning appears to be based on the principle that prolonged pre-trial detention can be a ground for granting bail, especially when a significant portion of the maximum sentence has already been served in custody. The Court did not explicitly discuss the merits of the allegations of GST evasion or the petitioner's role as the mastermind beyond what was stated by the revenue's counsel.

Key Issues

1. Whether the petitioner is entitled to be released on bail, considering the offences registered under the Central Goods and Service Tax Act, 2017, and the period of custody undergone, turning on Sections 132(1)(b), 132(1)(c), 132(1)(f), and 132(1)(1) & 132(5) of the CGST Act, 2017. The petitioner argued that the maximum punishment for GST evasion is five years and that he has already been in custody for approximately three months. The revenue, represented by the Director General of GST Intelligence, contended that the petitioner is the main mastermind behind the GST evasion.