KEYUR DIPAKKUMAR SHAH DIR. OF M/S. DHARA PHARMACHEM PVT. LTD AND M/S.DIPNA PHARMACHEM LTD.versusSTATE OF GUJARAT

      R/CR.MA/6472/2026                                   ORDER DATED: 23/03/2026




             IN THE HIGH COURT OF GUJARAT AT AHMEDABAD

      R/CRIMINAL MISC.APPLICATION (FOR REGULAR BAIL - BEFORE
                  CHARGESHEET) NO. 6472 of 2026

==========================================================
                          KEYUR DIPAKKUMAR SHAH
                                    Versus
                          STATE OF GUJARAT & ANR.
==========================================================
Appearance:
MR DEVANG NANAVATY, SENIOR ADVOCATE with MR CHETAN K
PANDYA(1973) for the Applicant(s) No. 1
MR J K SHAH, APP for the Respondent(s) No. 1
==========================================================

     CORAM:HONOURABLE MR. JUSTICE NIKHIL S. KARIEL

                                 Date : 23/03/2026

                                   ORAL ORDER


1.      Heard learned Senior advocate Mr. Devang Nanavaty with

learned advocate Mr. C.K. Pandya appearing on behalf of the

applicant and learned Additional Public Prosecutor Mr. J.K. Shah

appearing on behalf of the respondent-State.



2.      Rule. Learned APP waives service of rule on behalf of the

respondent-State.



3.      The applicant      has    filed   this     application   under      Section



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483      of     the       Bharatiya    Nagarik            Suraksha     Sanhita, 2023            for

enlarging        the       applicant on Regular Bail             in      connection        with

File No. ACST/ENF/FSU-5/KEYUR SHAH/2025-26/B.25 registered

with      the    office       of   Additional        Commissioner           of    State        Tax

(Enforcement),            Rajyakar    Bhavan,        Ahmedabad,           for    the   offence

punishable under Sections 132(1)(b), 132(1)(c) of the Central Goods

and Services Tax Act, 2017 and under Section 69 of the Gujarat

Goods and Services Tax Act, 2017.



4.      Learned        advocate       for    the     applicant       would       submit        that

considering the role attributed to the applicant, and nature of the

allegation levelled, the applicant may be enlarged on regular bail. It

is further submitted that no useful purpose would be served by

keeping the applicant in jail for indefinite period. It is further

contended that the applicant is ready and willing to abide by all

the conditions that may be imposed by this Court if released on

bail.



5.      As against the same, learned Additional Public Prosecutor

appearing for the respondent – State has vehemently objected to


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the grant of regular bail. Learned APP has submitted that looking to

the nature of offence and the role attributed to the present

applicant this Court may not exercise the discretion in favour of the

applicant and the application may be dismissed.



6.         I have heard learned advocates appearing on behalf of the

respective parties and perused the papers. At the outset, it requires

to be noted that pending the application, the complainant (charge-

sheet) has been filed and whereas, yet, considering following

aspects      hereinbelow,   this   Court     is   inclined   to   consider         this

application:


     i.    The present applicant having been arrested on 21.01.2026.


     ii.    The allegation being that the applicant defrauded the

     department of around Rs. 42,00,00,000/-, more particularly by

     wrongful availment of input tax credit under Section 132(1)(c)

     and towards passing of input tax credit without actual supply of

     goods under Section 132(1)(b) of the Gujarat Goods and Services

     Tax Act, 2017 and the CGST Act, 2017, and whereas, it appears

     to this Court that, the department is empowered to invoke



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     appropriate procedures for recovering and/or imposing penalties

     upon the applicant.


     iii.    The fact that while, this complaint is filed, yet, the

     apprehension expressed by learned APP could be allayed by

     imposing suitable conditions.


     iv. The fact of the applicant not having any antecedents.


     v.      The fact of the maximum punishment that could be imposed

     being five years.



            This Court has taken into consideration the law laid down by

the Hon’ble Apex Court in the case of Sanjay Chandra v. Central

Bureau of Investigation reported in [2012] 1 SCC 40.




7.          In the facts and circumstances of the case and considering the

nature of the allegations made against the applicant in the First

Information Report, without discussing the evidence in detail, prima

facie, this Court is of the opinion that this is a fit case to exercise

the discretion and enlarge the applicant on regular bail.




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     R/CR.MA/6472/2026                           ORDER DATED: 23/03/2026




8.       Hence, the present application is allowed. The applicant is

ordered to be released on bail in connection with File No.

ACST/ENF/FSU-5/KEYUR SHAH/2025-26/B.25 registered with the

office of Additional Commissioner of State Tax (Enforcement),

Rajyakar Bhavan, Ahmedabad, on executing a bond of Rs.1,00,000/-

(Rupees One Lakhs only) with one surety of the like amount to the

satisfaction of the trial Court and subject to the conditions that he

shall;


     [a] not take undue advantage of liberty or misuse liberty;


     [b] not act in a manner injurious to the interest of the

     prosecution;


     [c] surrender passport, if any, to the lower court within a week;


     [d] not leave the State of Gujarat without prior permission of the

     Sessions Court concerned;


     [e] furnish the present address of residence to the I.O. and also

     to the Court at the time of execution of the bond and shall not

     change the residence without prior intimation to the I.O.;


     [f] mark presence before respondent no.2, once a week for a



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      period of three months and thereafter once a month for a period

      of three months before the concerned police station.


      [h] respond to any notice issued by the Investigating Officer for

      appearing before him with an advance time of 48 hours.


      [i] inform the Investigating Officer in above referred six months

      as    regards       any   proposed   travel    plans   of   leaving     District-

      Ahmedabad, in advance.




9.         The Authorities will release the applicant only if he is not

required in connection with any other offence for the time being. If

breach of any of the above conditions is committed, the Sessions

Court concerned will be free to take appropriate action in the

matter.



10.        Bail bond to be executed before the lower court having

jurisdiction to try the case. It will be open for the concerned Court

to delete, modify and/or relax any of the above conditions in

accordance with law.




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       R/CR.MA/6472/2026                                                             ORDER DATED: 23/03/2026




11.       At the stage of trial, the trial court shall not be influenced by

any observations of this Court which are of preliminary nature

made at this stage, only for the purpose of considering the

application of the applicant for being released on regular bail.



12.       The application is allowed in the aforesaid terms. Rule is

made absolute to the aforesaid extent. Direct service is permitted.




                                                                                        (NIKHIL S. KARIEL,J)
PD
Original copy of this order has been signed by the Hon'ble Judge.
Digitally signed by: PARUL DUTTA(HCD0073), ENGLISH STENOGRAPHER GRADE TWO CLASS TWO, at High Court of Gujarat on 24/03/2026 15:18:23




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