GST Act Is A Self-Contained Code, Authorities Cannot Bypass Section 132 By Invoking IPC Without Commissioner’s Sanction: MP HC Grants Bail In Raja Sheikh

The Madhya Pradesh High Court has granted regular bail to the applicant in custody since 01.07.2025 in connection with a bogus firm and fake ITC racket causing wrongful loss of approximately Rs. 33.80 crore to the State exchequer.

The court held that the CGST Act is a self-contained code with its own penal provisions and GST authorities cannot bypass the procedure prescribed under Section 132 by invoking IPC provisions without obtaining prior sanction of the Commissioner under Section 132(6).

The court noted that the maximum sentence for tax evasion exceeding Rs. 5 crore is five years, compounding is available under Section 138, co-accused Dheeraj Gupta was granted anticipatory bail on the same date, and further detention would adversely affect the applicant’s business.

Raja Sheikh v. The State of Madhya Pradesh | Misc. Criminal Case No. 49369/2025 | 15 January 2026 | MP HC