Bail Granted in GST Registration Fraud Where Only Disclosure Statement Implicates Accused: Allahabad High Court

The Allahabad High Court released an accused jailed since April in a case lodged by GST officials, as his own confession was the only material linking him.

The Allahabad High Court has granted bail to an accused in a GST fraud case registered under the Bharatiya Nyaya Sanhita (BNS), holding that there was, prima facie, no material against him except his own disclosure statement. [Mohsin @ Mohsinuddin v. State of U.P., 2026-juristway.com-3283-HC(Allahabad)-GST]

Justice Avnish Saxena heard the bail application in Case Crime No. 205 of 2025, registered at Police Station Ganj, District Rampur, under Sections 61(2), 318(4), 336(3), 338 and 340(2) of the BNS. The FIR dated 4 Oct 2025 was lodged by GST officials against three named persons, and the applicant was not one of them.

The applicant’s counsel submitted that his name surfaced during investigation when, after his arrest, he allegedly confessed that he used to register companies under GST. Apart from that statement, it was argued, nothing implicated him, and the laptop and mobile phone shown as recovered at his instance had been planted. Counsel attributed his implication to a dispute with a police officer over the parking of a motorcycle.

It was further submitted that the applicant had no link to the GST fraud or to the claiming of input tax credit, that the investigation was continuing and he was cooperating with it, that he had no criminal history, and that he had been in jail since 16 Apr 2026. The Additional Government Advocate opposed bail but could not dispute these facts. Counsel for GST was also heard.

The Court found, prima facie, that “there is no implicating material available against the accused-applicant, except his disclosure statement”, and allowed the application without touching the merits of the case.

The applicant is to be released on a personal bond and two sureties each in the like amount, to the satisfaction of the court concerned, in view of the Supreme Court’s observations in Girish Gandhi v. State of Uttar Pradesh (2024) and Policy Strategy for grant of bail in re. He must cooperate in the judicial process for a fair and speedy disposal.

2026-juristway.com-3283-HC(Allahabad)-GST