Authority: High Court of Gujarat at Ahmedabad

Order Date: 27/10/2026

Case Overview

  • Parties: Applicant Ayush Sureshchandra Shah (father) and his son (unnamed) versus State of Gujarat & Anr.
  • Applications: R/Criminal Misc. Application No. 23616 of 2026 and No. 23559 of 2026 filed under Section 483 of the Bharatiya Nagarik Suraksha Sanhita, 2023 for regular bail.
  • Offences: Sections 132(1)(b) and 132(1)(c) of the Gujarat GST Act, 2017 and Central GST Act, 2017, alleging commercial fraud, evasion of GST and illegal availing of Input Tax Credit.
  • Investigation Files: File No. DCST/ENF-11/AC1/JUNAGADH/AYUSH SHAH/2026-27/Ow.No.65 (CR.MA No.23616/2026) and File No. DCST/ENF-11/AC1/JUNAGADH/2026-27/Ow.No.66 (CR.MA No.23599/2026) registered with Assistant Commissioner of State Tax (1), Enforcement, Div‑11, Junagadh.
  • Allegations: Creation of 21 fictitious firms, illegal availing of Input Tax Credit worth ₹325 Crore, GST evasion amounting to ₹23.08 Crore, loss to public exchequer, arrest on 22‑06‑2026 under Section 69 of the CGST Act.
  • Representation: Senior Advocate N.D. Nanavaty and Advocate A.N. Mehta for applicants; respondent No.2 (tax department) opposed bail citing risk of evidence tampering and escalation of fraud.
  • Legal Principles Considered: Nature of accusation, severity of punishment (maximum 5 years under Section 132), risk of tampering, likelihood of appearance, character of accused, public interest, and Supreme Court precedents (Vineet Jain vs Union of India, 2023 SCC OnLine (SC) 2331; Sanjay Chandra vs CBI, [2012] 1 SCC 40; Gudikanti Narasimhulu vs Public Prosecutor, (1978) 1 SCC 240).

Final Outcome

  • The Court granted regular bail to both applicants.
  • Each applicant must execute a personal bond of ₹25,000 with one surety of the same amount, to the satisfaction of the trial court.
  • Conditions imposed:

a) No misuse of liberty.

b) No obstruction of prosecution or police investigation; no tampering with evidence.

c) Surrender passport (if any) to the Trial Court within one week.

d) Not leave the State of Gujarat without prior permission of the concerned Trial Court.

e) Appear before the concerned Department twice a month for three months (11:00 a.m. to 2:00 p.m.) and thereafter as required.

f) Furnish UIDAI number, contact numbers, passport number (if any), email address, and present residential address to the Investigating Officer and the Court; no change of residence without permission.

g) Join and fully cooperate with further investigation; appear before the authority when summoned.

h) No direct or indirect contact with witnesses; no involvement in illegal activity; breach allows the department to seek cancellation of bail.

i) Do not prolong trial; remain present before the Court as and when required.

  • Breach of any condition empowers the concerned Trial Court to cancel bail.
  • Bail bond to be executed before the lower court having jurisdiction; the court may modify or relax conditions as per law.
  • The trial court shall not be influenced by the preliminary observations made by this Court.
  • The order is absolute and direct service of notice is permitted.

Topics: Bail, GST Fraud, Judicial Order