Success Story: Bail Granted in ₹9.19 Crore ITC Case – A Legal Victory for Justice
Background of the Case
In July 2025, two Mumbai-based businessmen, Akhtar Yunus Khan and Tribhuwan Chittranjan Sinha, partners of M/s Accurate Enterprise, were arrested under allegations of availing fraudulent Input Tax Credit (ITC) worth ₹9.19 crores. The authorities claimed that the firm had engaged in transactions without actual movement of goods, relying on bogus invoices in violation of the Goods and Services Tax (GST) Act, 2017.
The case drew significant attention because it highlighted the growing scrutiny of ITC claims by tax authorities and the potential consequences of alleged misuse.
Defense Strategy
Appearing for the accused, Advocate Sachin P. Kumar argued that:
- The case was based solely on documentary evidence, all of which was already in the custody of the department.
- The accused had cooperated fully during the investigation, including responding to summons and providing electronic and physical records.
- Custodial interrogation was no longer necessary since the investigative agencies had already gathered the required documents.
- Both individuals were permanent residents with strong local ties, making the risk of absconding minimal.
Prosecution’s Argument
The prosecution opposed the bail, citing:
- Ongoing investigations, including pending verifications with suppliers and transporters.
- Allegations that the accused had admitted involvement during preliminary statements.
- A possibility that the accused could interfere with evidence or influence witnesses.
Court’s Observations
After carefully considering submissions from both sides, the Additional Chief Judicial Magistrate, 19th Court, Esplanade, Mumbai, made several key observations in granting bail:
- The case primarily revolved around past transactions (2022–23).
- All documents and electronic evidence were already seized by the department.
- Custodial interrogation was not necessary at this stage.
- The accused had no prior criminal antecedents and had cooperated with the investigation.
- Stringent bail conditions could adequately safeguard the investigation’s integrity.
The Bail Order
On 20th August 2025, the Court granted bail to both accused with the following conditions:
- Execution of a ₹2,00,000 personal bond with sureties.
- Temporary cash bail in lieu of sureties.
- Surrender of passports for six months.
- Restriction on international travel without prior court permission.
- Obligation to appear before authorities whenever called for investigation.
- Prohibition from tampering with evidence or influencing witnesses.
Significance of the Outcome
This case is a reminder of the balance courts must strike between enabling a fair investigation and protecting the fundamental rights of individuals. Bail is not an acquittal but an acknowledgment that prolonged custody without necessity undermines justice.
For businesses, this case also reinforces the importance of maintaining robust documentation, compliance, and transparency in GST-related transactions.
Access the Bail Orders
For those interested in the detailed legal reasoning, you can view the official bail orders here: