Anticipatory Bail Not Required for GST Offences Below ₹5 Crore | SC

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Anticipatory Bail for GST Offences

Case Details: Harish Wadhwani vs. Directorate General of GST Intelligence (DGGI) - [2026] 187 taxmann.com 243 (SC)

Judiciary and Counsel Details

  • Rajesh Bindal & Vijay Bishnoi, JJ.
  • Gaurav Agrawal, Sr. Adv., Vikalp Sharma, Palash Soni, Advs. & Bharat Bagla, AOR for the Petitioner.

Facts of the Case

The applicant, an authorised signatory of a steel business entity, invoked Section 482 of the Bharatiya Nagarik Suraksha Sanhita, 2023, before the High Court seeking anticipatory bail in proceedings initiated by the Directorate General of GST Intelligence (DGGI) under Section 69 read with Section 132 of the CGST Act and Chhattisgarh GST Act. It was submitted that the alleged ITC exposure was about Rs. 1.16 crore, with recoverable liability of Rs. 0.75 crore, and that only summons had been issued without any arrest under Section 69. The Department contended that since the tax liability was below Rs. 5 crore, the offences under Section 132 were non-cognizable and bailable, making anticipatory bail unwarranted. The High Court, noting the liability and absence of arrest proceedings, rejected the application, and the matter was placed before the Hon’ble Supreme Court of India.

Supreme Court Held

The Hon’ble Supreme Court held that no case was made out for interference with the impugned order passed by the High Court. It observed that the High Court had correctly appreciated the statutory scheme under Sections 69 and 132 of the CGST Act and the admitted position that the alleged tax liability was below Rs. 5 crore. The Court held that, in the present factual context, offences under Section 132 were treated as non-cognizable and bailable, and therefore the apprehension of arrest was not substantiated. It further noted that only summons had been issued and no arrest had been initiated under Section 69 by the GST authorities. Accordingly, it was held that anticipatory bail was unwarranted in the context of a non-cognizable offence, and the Special Leave Petition was dismissed.

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Author: Taxmann

Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that's easy to read and remain consistent across all imprint and digital publications are applied