Gujarat High Court Grants Bail in Alleged E-Way Bill Forgery and GST Fraud Case Involving ₹29.30 Lakh Deposit

The intersection of digital taxation compliance and criminal jurisprudence often brings complex cases before the judiciary, especially when allegations of identity theft and digital forgery are involved. In a significant judicial order, the Gujarat High Court recently adjudicated a bail application concerning the alleged fabrication of E-way bills and unauthorized utilization of GST credentials. The case, Prabhat Ashokkumar Chhogalal Maheshwari Vs State of Gujarat, highlights the judiciary's approach to pretrial detention in economic offences heavily reliant on documentary evidence.

The High Court ultimately granted regular bail to the applicant, emphasizing the foundational legal doctrine that bail is the rule and jail is an exception, provided the accused complies with stringent financial and procedural conditions.

Factual Matrix of the Alleged Offence

The dispute stems from a First Information Report (FIR) registered at the Krushnanagar Police Station in Ahmedabad City. The complainant and the applicant were previously colleagues in the same organization before venturing into separate business operations.

According to the allegations documented in the FIR, the applicant purportedly misused the digital credentials of the complainant's business entity, M/s. Crown Incorporation. The prosecution alleged that between September 2018 and June 2025, the applicant illicitly accessed the complainant's system using their name and password without authorization.

The core of the alleged economic offence involved:

  • The creation of fabricated E-way Bills amounting to an aggregate value of ₹1,60,11,837.
  • The forgery of signatures on these digital transit documents.
  • The subsequent filing of GST returns using these forged documents, which allegedly resulted in a substantial tax liability for the complainant.
  • The GST Department reportedly assessed a tax liability of ₹24,42,484, coupled with a penalty calculated at three times the tax amount.

Consequently, the applicant was arrested and placed in judicial custody on 20 August 2026.

The law enforcement authorities registered the FIR under a combination of the newly enacted criminal statutes and cyber laws. The specific provisions invoked against the applicant included: