Facts of the Case

This is a bail order, not an adjudication of any GST liability. Ashish Kumar Tiwari sought bail in FIR/Case Crime No. 371 of 2022, registered at Police Station Cantt, District Gorakhpur, under Sections 409, 417, 419, 420 and 424 of the Indian Penal Code. The FIR alleged that a fake firm had been got registered using a fake address, resulting in a loss of GST revenue. Notably, no allegations under any provision of GST law were levelled against the applicant himself — the case against him proceeded solely on IPC offences relating to cheating, criminal breach of trust and personation. The applicant had been in judicial custody since 13 February 2023 by the time bail was heard.

Issues Involved

  1. Whether the applicant was entitled to bail given the nature of the allegations, the absence of any GST-law charge against him personally, and the length of custody already undergone.

Petitioner's Arguments

The order does not separately record detailed submissions by the applicant's counsel beyond the bail prayer itself; the case for bail rested on the facts that no GST-specific allegation was made against the applicant and that he had already spent a significant period in custody.

Respondent's Arguments

  • The learned A.G.A. (State counsel) vehemently opposed the bail prayer, though the specific grounds of opposition are not elaborated in the order.

Court Order / Findings

  • The Court noted that the allegations — a fake firm registered at a fake address causing GST revenue loss — would need to be established through documentary evidence at trial, and that no allegations under GST provisions were levelled against the applicant personally.
  • Considering the applicant had no criminal antecedents and had already been in custody since 13 February 2023, and expressly 'without expressing any opinion on merit', the Court held the applicant was entitled to bail.
  • Bail was granted subject to conditions: executing a bond to attend hearings, not committing any similar offence, and not tampering with evidence or influencing witnesses.

Important Clarification

This order says nothing about whether the fake-firm registration or the alleged GST revenue loss actually occurred, or about any GST law provision — the Court expressly declined to express any opinion on merits. It is a standard bail order turning on custody period and absence of antecedents, and should not be cited as any finding on GST fraud or fake registration issues.

Sections Involved

  • Sections 409, 417, 419, 420 and 424 of the Indian Penal Code, 1860 — the offences for which the applicant was charged (criminal breach of trust, cheating, cheating by personation, cheating and dishonestly inducing delivery of property, and dishonest removal of property).
  • Allegations referenced loss of revenue under the Goods and Services Tax framework, though no specific GST Act section was invoked against the applicant.

Decision – In Favour of

Decided in favour of the applicant on the limited question of bail — release on bail was granted without any opinion expressed on the merits of the underlying fake-firm/GST-revenue-loss allegations.

Case Details

Court: High Court of Judicature at Allahabad
Case No.: Criminal Misc. Bail Application No. 31451 of 2023 (Neutral Citation: 2023:AHC:156706)
Coram: Hon'ble Justice Pankaj Bhatia
Date of Order: 4 August 2023

Link to Download the Order

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