Patna HC Grants Pre-Arrest Bail to Consultant in ₹7.26 Crore ITC Fraud Allegation

The intersection of tax compliance and criminal liability often places tax professionals and consultants in precarious positions, especially when allegations of fraudulent Input Tax Credit (ITC) surface. The recent judicial pronouncement by the Patna High Court in the matter of Gautam Kumar Vs State of Bihar sheds significant light on the responsibilities of tax practitioners and the evaluation of criminal intent in GST-related discrepancies.

This article provides a comprehensive summary of the case, detailing the factual matrix, the legal arguments presented, and the ultimate ruling of the High Court, which granted anticipatory bail to the accused consultant while imposing a unique professional restriction.

Factual Matrix of the Dispute

The controversy stems from an FIR registered as Jalley P.S. Case No. 129 of 2024. The primary allegations revolved around the orchestration of a massive GST fraud involving bogus ITC claims.

The Assessee's Business Operations

The informant, Pawan Kumar Mahato, managed a building materials enterprise under the name of Veena Traders. According to the prosecution's narrative, the informant engaged the services of the petitioner, Gautam Kumar, in the year 2021. The initial purpose of this engagement was to procure a GST registration certificate for a related business entity, Sushil Hardware, to facilitate a loan application for the informant's wife, Rekha Devi, under a specific government scheme.