In the High Court of Punjab and Haryana, at Chandigarh Reserved On: 12.11.2025 Pronounced On: 15.12.2025 Baldeep Singh Sapra ... Petitioner(s)

Versus State (Directorate General of GST Intelligence), Chandigarh ... Respondent(s)

CORAM: Hon'ble Mr. Justice Surya Partap Singh.

Present: Mr. Anil Mehta and Ms. Livleen Brar, Advocates for the petitioner(s).

Mr. Sourabh Goel, Senior Standing Counsel with Ms. Deify Jindal, Advocate, for the respondent.

Surya Partap Singh, J.

1. Alleging the commission of offence punishable under Section 132(1)(b)&(c) read with Sections 132(1(i) and 135(5) of the Central Goods and Services Tax Act, 2017, hereinafter being referred to as “CGST Act”, the case No. INT/7-2005-Group-E O/o ADG-DGGI-ZU-Chandigarh has been registered, wherein the petitioner has been implicated as an accused and therefore, taken into custody on 28.05.2025. The petitioner is seeking for the benefit of bail with regard to above mentioned arrest.

2. In nut-shell, the facts projected by the respondent/complainant are that on 26.05.2025 two searches, by the Investigating Agency of the respondent, were conducted, almost simultaneously. The first search was from 5.45 P.M. to 11.45 P.M. at the residential premises of the petitioner and DEEPAK KUMAR BHARtDhWeA Jsecond one from 5.43 P.M. on 26.05.2025 till 01.50 A.M. on 28.05.2025 at the premises of the company of the petitioner ‘M/s PMI Smelting Private Limited’, GST No. 03AANCP1807A1ZZ. As per complainant, during the former search, one mobile phone and certain documents kept in Folders No.1 and 2, respectively, were seized, while in the second search only the personal mobile phone of the petitioner was seized.

3. The pith and substance of the allegations, as contained in the complaint, is that an intelligence was gathered to the effect that ‘M/s PMI Smelting Private Limited’ having registered office at 536/210, Industrial Area-C, Dhandari Kalan, Ludhiana, having GSTIN 03AANCP1807A1ZZ, was engaged in availing Input Tax Credit, hereinafter being referred to as “ITC”, and has thereby caused loss to the State Exchequer to the tune of ₹30.21 Crores (approx.) on the basis of invoices taken from ‘M/s P.C. Techno Solutions’, without actual transaction of goods. Said ‘M/s P.C. Techno Solutions’ was further taking ITC on the basis of invoices issued from firms ‘M/s Maa Vaishno Enterprises’ and ‘M/s S.S.Enterprises’. ‘M/s S.S. Enterprises’ was taking ITC on the basis of invoices issued by ‘M/s Goyal Trading Company’ and ‘M/s Jha and Jha Enterprises’. All said firms forming a chain were found having no office at the registered addresses which means that in fact said firms were not existing and were being used for creating fake bills to get ITC. Accordingly, searches were conducted at the residential addresses of Manmohan Singh and Baldeep Singh, Directors of ‘M/s PMI Smelting Private Limited’, in Plot No. 132-A, Model Town Extension, Ludhiana, their premises having Plot No. 501, Industrial Area B, Gill Road, Opposite Meshi Dhaba, Ludhiana and at their registered office in Industrial Area-C, Dhandari Kalan, Ludhiana. During search in the office in Industrial Area B, Gill Road, Ludhiana, it transpired that GST returns of both ‘M/s PMI Smelting Private Limited’ and ‘M/s P.C. Techno Solutions’ were being filed from the same premises and Broadband connection used for filing the same was also in the name of applicant Manmohan Singh with contact details of his son Baldeep Singh. Several cheque books and stamps were found lying in the premises. It also transpired that vehicles used for alleged transportation of articles were having registration numbers which had been assigned to motor cars, scooters or three wheelers, whereas the above said vehicles were neither designed nor capable of transporting goods in commercial quantity. Thereby, it was clear that fake invoices were being used by the applicant and his son Baldeep Singh for taking ITC and causing loss to the State Exchequer. Upon calculating, the amount ca