Section 132 of the CGST Act, 2017 – Anticipatory Bail –-- The applicant sought anticipatory bail, which was moved before the learned Sessions Judge and the same was rejected vide reasoned order dated 12.10.2021. It is alleged that the applicant has passed illegal tax credit from such companies which are only existed on papers and not physically. The counsel for the applicant submitted that the applicant was granted registration after verification of all the documents. Further, if the alleged illegal tax credit availed of is below Rs. 5 Crores, then the offence is bailable. In the absence of assessment of the liability as regards the illegal tax credit availed by the applicant, the applicant cannot be taken into custody for custodial interrogation. The counsel for the revenue submitted that custodial interrogation of the applicant is very much justified and required in this case. The court observed that even if the applicant claimed to have transactions with the companies, custodial interrogation is necessary so as to find out who was operating such fake companies and further investigation as to the whether such fake firms are in operation. No case for grant of bail is made out.

Held that:- The Hon’ble High Court rejected the application.