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

Inspector (Anti-Evasion) CGST Commissionerate, Ludhiana ... Respondent CORAM: HON'BLE MRS. JUSTICE MANISHA BATRA Present: Mr. Kamaldeep Singh Sidhu, Advocate, Mr. Naveen Bindal, Advocate and Mr. Aman Bansal, Advocate for the petitioner.

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

...

Manisha Batra, J. (Oral).

Instant petition has been filed under Section 483 of the Bharatiya Nagarik Suraksha Sanhita, 2023 (for short 'BNSS') making prayer for grant of regular bail to the petitioner in a complaint case titled as 'Union of India through CGST Commissionerate, Ludhiana Vs. Deepak Goyal and others' filed by the respondent under Section 132(1)(b)(c) of the Central Goods and Service Tax Act, 2017 (for short 'CGST Act').

2. As per the allegations, during the investigation conducted by Anti-Evasion Branch, CGST Commissionerate, Ludhiana, it was found that two firms namely, M/s New Vasan Electric Company and M/s Shiv Enterprises were involved in availing and passing of Input Tax Credit (ITC)

on the strength of invoices issued by the suppliers, whose GST registrations had been cancelled suo-moto by the department, thereby rendering such ITC ineligible and fraudulent in nature. Moreso, M/s Shiv Enterprises had declared its Additional Place of Business at G.T. Road, Ludhiana which was the same address as Principal Place of Business of M/s New Vasan Electric Company. Even both the firms were found using the same mobile numbers for getting OTPs for filing GST returns. No genuine business activity was found to be carried out on the Principal Place of Business declared by M/s Shiv Enterprises, thereby indicating the possibility of a non-operational or paper entity. The overlap in declared business premises between the two entities raised serious concern about their independent functioning. It was also observed that major suppliers of both the above named firms were either found to be non-existent or untraceable during physical verification. A detailed examination of supplier chain of the major suppliers were undertaken and it was noted that in most cases, the trading chain ended abruptly with 'NIL' supplies, indicating the prices of paper or circular transactions with no actual movement of goods.

3. As per the further allegations, on 03.06.2025, search operations were conducted and it was found that both the above named firms had availed and passed on ineligible ITC to the tune of Rs.28.08 Crores without any actual movements of goods, thereby causing huge loss to the Government Exchequer. Operator of the firm namely M/s Shiv Enterprises and proprietor of M/s New Vasan Electric Company was arrested on 04.06.2025. Investigation further revealed that during the period from financial years 2019-20 to 2024-25, M/s Goel Electric company had availed ITC to the tune of Rs.4,05,93,058.38/- from M/s New Vasan Electric Company and had availed ITC amounting to Rs.1,94,97,764.16/- from M/s Shiv Enterprises. The total ineligible ITC as availed by M/s Goel Electric Company amounted to Rs.6,00,90,822.54/-. M/s Goel Electric Company was found to be a proprietorship firm of Rakesh Goel, father of the present petitioner and it was further found that the petitioner was practically managing the affairs of the same. No substantial record such as invoices/Eway bills etc. were found to be maintained at the business premises of M/s Goel Electric Company. It was further revealed that the petitioner was managing the business operations of M/s Goel Electric Company since 1999, which was registered on his father's name and who was managing purchases and sales and handled GST related compliances. He had admitted the fact for not maintaining stock position and also the fact that some invoices received where no goods were actually delivered. It was also revealed that he had adjusted ITC based on goodless invoices received fr