Defective Compliance with Statutory Notice Leads to Bail Grant on Technical Grounds
In a notable decision, the Gauhati High Court has granted bail to Sameer Malik, who was implicated in a significant Goods and Services Tax (GST) fraud case. The decision was rendered by Justice Pranjal Das on December 19, 2025, in response to a subsequent bail application following the rejection of an earlier petition.
The case against Sameer Malik involved allegations of obtaining GST registrations for non-existent firms and issuing fake invoices to fraudulently claim Input Tax Credit (ITC), with the fraudulent transactions estimated to exceed Rs. 8 Crores. Malik was arrested by the Anti Evasion Unit of the CGST, Guwahati on November 14, 2025, under Sections 132(5) and 69 of the CGST Act, 2017.
The court's decision to grant bail was primarily based on procedural lapses in the arrest process. The statutory notice issued under Section 35(3) of the Bharatiya Nagarik Suraksha Sanhita, 2023, indicated a required appearance time that was after Malik had already been arrested. This discrepancy pointed to a failure in complying with procedural requirements, rendering the arrest infirm.
The court referred to precedents, including the Supreme Court's ruling in Radhika Agarwal v. Union of India and Arnesh Kumar v. State of Bihar, emphasizing the necessity of adherence to procedural norms under the GST law. The failure to follow these procedures led to the court's decision to grant bail on technical grounds.
Sameer Malik has been granted bail on the condition of a Rs. 1,00,000 bond with a surety of the like amount. He must not abscond, cooperate with the ongoing investigation, refrain from tampering with evidence, and avoid influencing witnesses. Any violation of these conditions could result in the cancellation of his bail.
The court also highlighted the need for revenue officials to receive continual training in procedural matters under criminal law, to ensure that future arrests are not invalidated due to technical deficiencies.
Bottom Line:
GST Fraud - Bail granted due to defective compliance with statutory notice under Section 35(3) of Bharatiya Nagarik Suraksha Sanhita, 2023 - Arrest prior to the required appearance time indicated in the notice makes the arrest infirm.
Statutory provision(s): Bharatiya Nagarik Suraksha Sanhita, 2023 Sections 35(3), 47, 48; Central Goods and Services Tax Act, 2017 Sections 69, 70, 132(5).
Sameer Malik v. Union of India, (Gauhati) : Law Finder Doc Id # 2829484
