IN THE HIGH COURT OF PUNJAB & HARYANA AT CHANDIGARH Date of decision:27.10.2025 Dipanshu Anand ... Petitioner Vs.

Principal Commissioner, Central GST, Ludhiana & another... Respondent CORAM: HON'BLE MRS. JUSTICE MANISHA BATRA Present: Mr. Anil Mehta, Advocate with Ms. Livleen Brar, Advocate for the petitioner.

Mr. Sourabh Goel, Sr. Standing counsel with Ms. Deify Jindal, Advocate for the respondents.

...

Manisha Batra, J. (Oral).

1. Prayer in this petition filed under Section 483 of the Bharatiya Nagarik Suraksha Sanhita, 2023 ( for short 'BNSS') is for grant of regular bail to the petitioner in case arising out of complaint No.GEXCOM/AE/ INV/570/2025-AE Office of PR Commissioner-CGST- Ludhiana filed under Sections 132(1)(c&1) and 132(1)(i) of Central Goods and Service Tax Act, 2017 (for short 'CGST Act').

2. As per the allegations, during the course of investigation conducted by DGGI, Regional Unit, Amritsar, it was revealed that M/s Gauri Shankar Metal Industries, which was a partnership concern of the petitioner and M/s Shivansh Enterprises, which is sole proprietary concern of the petitioner were engaged in availment of fraudulent Input Tax Credit (ITC ) during the period from financial year 2017-18 to 2020-21, on account of eight fake firms created and operated by one Baljinder Singh @ Gopan and his accomplices. Searches were conducted by DGGI in the month of October, 2021 at the premises of the above named firms and a show cause notice was issued on 31.07.2024 under Section 74 of CGST Act. During independent investigation carried by Anti-Evasion Branch of CGST Commissionerate, searches were conducted during the month of July, 2025 at the premises of above named firms and it was revealed that both these firms were engaged in availment of fraudulent Input Tax Credit (ITC) on account of bogus invoices without actual supply of goods, issued by M/s New Vasan Electric Company and cancelled supplies, thereby causing wrongful loss to the Government Exchequer during the period from financial years 2019-2020 to 2024-2025. The petitioner was found involved in fraudulent availment/utilization of ITC through receipts of bogus invoices worth Rs.48.92 Crores in violation of provisions of Section 132(1)(c) of CGST and had evaded tax to the tune of Rs.7.46 Crores. Petitioner was arrested on 03.07.2025. He had moved application for grant of bail, which had been dismissed by the Court of learned Chief Judicial Magistrate, Ludhiana vide order dated 22.07.2025 and then by learned Additional Sessions Judge, Ludhiana vide order dated 06.08.2025.

3. It is argued by learned counsel for the petitioner that he has been falsely implicated in this case on allegations of wrongfully availing ITC of Rs.7.46 Crores on bogus invoices of Rs.48.92 Crores though through his firms, he had genuinely received and supplied goods against genuine invoices with a proper issuing of bills/Eway bills and further by making payments of those bills through banks. He had already made voluntary payment under Section 74(5) of the CGST Act to the tune of Rs.1.72 Crores on behalf of his sole proprietary concern and had paid a sum of Rs.76.66 lakhs from M/s Gauri Shankar Metal Industries against the show cause notices issued on 31.07.2025. Allegations pertaining to purported involvement of the petitioner in a racket concerning fraudulent availment and utilization of ITC without any actual movement and supply of goods are based on unverified and uncorroborated data. The Court of learned Chief Judicial Magistrate and learned Sessions Judge while dismissing his bail application did not give due consideration to the fact that he had voluntarily deposited tax. As per report of the Investigating Officer himself ITC allegedly received in excess over the consecutive assessment years from 2019 to 2025 amounted to Rs.5.22 Crores in case of M/s Shivansh Enterprises. The ITC calculated for the assessment years 2019-20, 2020-21 has already been stayed by this Court in a Civil Writ Petition bea