Section 132 of the CGST Act, 2017—Bail application-- The petitioner filed bail application under Section 439 of Cr.P.C. The petitioner submitted that persons who have raised this issue have not been impleaded as accused in this case. The maximum sentence under the Act is five years. Petitioner has remained in custody for five months. The respondent booked offence case under Section 132(1) of the Act. The respondent submitted that the petitioner has claimed input tax credit to the tune of Rs. 11.6 crores without there being any transaction. It is contended that the vehicles in which products stated to have been send to the petitioner are pick-up, scooty and motorcycle etc. which clearly goes to show that fake bill entries were manipulated to claim input tax credit to the tune of Rs. 11.6 crores.
Held that:-The Hon’ble High Court rejected the bail application on the ground that claim of input tax credit without there being any transaction directly affects the economy of the country, petitioner has claimed ITC to the tune of Rs. 11.6 crores.—Uma Shankar Aggarwal Vs Union of India  25 TAXLOK.COM 015 (Rajasthan)