Murali Barathwaj vs. Directorate General Of Gst Lntelligence
(Telangana High Court, Telangana)

Case Law
Petitioner / Applicant
Murali Barathwaj
Directorate General Of Gst Lntelligence
Telangana High Court
Oct 20, 2020
Order No.
TR Citation
2020 (10) TR 3497
Related HSN Chapter/s
Related HSN Code


This petition is filed seeking to grant regular bail under Section 439 of the Code of Criminal Procedure, 1973 (Cr.P.C.). The Petitioner is sole Accused in F.No.DGGI/INT/INTL/380/2020-GRK Registered by Directorate General of GST Intelligence, Hyderabad Zonal Unit. The offence alleged against the petitioner is under Section 132(1)(i) of Central Goods and Services Act, 2017.

2. Heard Sri S. Niranjan Reddy, learned senior counsel representing Sri K. Ravi Mahender, learned counsel for the petitioner ancl Sri P. Dharmesh, learned Standing Counsel.  Perused the record.

3. The allegation against the petitioner herein is that he has wrongly/ illegally availed 14 crores of Input Tax Credit without supply of goods and on the basis of fake invoices.  Learned Senior Counsel would submit that the petitioner  herein has already paid 117 crores of GST. The petitioner herein has also filed W.P. No. 16871 of 2020 seeking to set aside the action of attachment of the Bank account by the respondents therein. Vide order, dated 09-10-2020, the Hon’ble Division Bench of this Court in I.A.No.1 of 2020 in W.P.No. 16871 of 2020 passed the following order:

“There shall be interim suspension as prayed for, on condition of the petitioner furnishing a bank guarantee for a sum of ₹ 8,64,70, 780/- to the 2nd respondent within one week from today; and the petitioner shall not utilize the amount of ₹ 5,05,77,874/- available in the credit ledger on the GST Portal.”

By referring the same learned senior counsel would further submit that revenue interest of the department is protected. The petitioner is in judicial custody from 23-09-2020. In 28 days the respondent authorities have examined only 2 witnesses.

4. On the other hand, learned Standing Counsel would submit that the petitioner has not furnished his correct residential address in any of the returns. There is every possibility of interference of the petitioner in the investigation. The subordinates of the petitioners are threatening the witnesses, therefore, he sought to dismiss the present application.

5. On perusal of the entire record would reveal that the allegation against the petitioner herein is illegal/ wrongful claim of 14 crores of Input Tax Credits without supply of goods. The Hon’ble Division Bench has passed a conditional order, as stated above. The petitioner is in jail from 23-09-2020. Admittedly, there is no explanation in the counter filed by the respondents with regard to stage and completion of investigation from 23-09-2020.

6. Considering the said aspects, this Court is inclined to grant regular bail to the petitioner herein.

7. Accordingly, the present Criminal Petition is allowed granting bail the petitioner with the following conditions:

i) The petitioner – Accused shall furnish a personal bond for an amount of ₹ 50,000/- (Rupees fifty thousand only) with two (02) sureties for like sum each to the satisfaction of the Special Judge for Economic Offences, Hyderabad;

ii) He shall report before the Investigation Officer every day between 10.00 a.m. and 05.00 p.m. till completion of investigation and filing final report;

iii) The petitioner shall deposit his Passport with the concerned Court;

iv) The petitioner shall not leave the country without permission of the Court below; and

v) He shall co-operate with the Investigating Officer by furnishing the information and by producing all the documents. The petitioner or his subordinates shall not threat the witnesses and shall not interfere with the investigation directly or indirectly;

vi) The respondent authorities are at liberty to file an application for cancellation of bail in the event of violation of any of the above said conditions by the petitioner.

As a sequel, miscellaneous petitions, if any, pending in

this criminal petition shall stand closed

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