IN THE HIGH COURT OF PUNJAB & HARYANA AT CHANDIGARH Date of decision:30.10.2025 Raman Kumar Chaurasia & another ... Petitioners Vs.

Directorate General of GST Intelligence, Ludhiana & anr. ... Respondents CORAM: HON'BLE MRS. JUSTICE MANISHA BATRA Present: Mr. Nikhil Ghai, Advocate for the petitioners.

Mr. Sourabh Goel, Sr. Standing counsel with Ms. Deify Jindal, Advocate for the respondent No.1.

Ms. Sakshi Bakshi, AAG, Punjab.

...

Manisha Batra, J. (Oral).

The instant petition has been filed by the petitioners Raman Kumar Chaurasia and Devinder Singh under Section 483 of the Bhartiya Nagarik Suraksha Sanhita 2023 (for short 'BNSS') seeking indulgence of this Court for grant of regular bail in case No.202505DNN 50000665556 and No.202505DNN50000333B8D filed under Sections 132 and 69 of the Central Goods and Service Tax Act, 2017 (for short 'CGST Act').

2. Adumbrated facts as emanating from the record and relevant for the purpose of disposal of this petition are that the petitioners are partners of firm M/s Aar Dee Enterprises and petitioner No.1 is proprietor of M/s Aashi Steel Industries. Both these firms are engaged in trading of metal scrap, including iron and steal. The accounting of both these firms was handled by petitioner No.2. On receipt of information regarding fraudulent availment and utilization of Input Tax Credit (ITC) to the tune of Rs.12.31 Crores by M/s Aar Dee Enterprises, Rs.0.69 Crores by M/s Ashish Steel Industries, investigation had been initiated by the respondent and it was noticed that the petitioners in conspiracy with their associate Deepanshu Srivastav had created 41 fake entities showing purchases from several fictitious firms. Majority of the purchases were shown to be made from the suppliers located outside the State of Punjab. Invoices were got issued from bogus firms operated by them and inadmissible ITC to the tune of Rs.8.63 Crores had been availed and utilized through 37 fake firms controlled by Deepanshu Srivastav. Their brokers arranged invoices from bogus firms and supplied goods from local scrap traders without bills. Several suppliers of these firms were found to be non-existent or found to have obtained registrations by means of fraud or wilful mis-statements. The petitioners were arrested on 15.05.2025. Their statements were recorded. Documents were collected, which showed that huge loss to the Government Exchequer had been caused by them in connivance with each other. Formal complaint has been filed against them before the competent Court after completion of necessary investigation/inquiry. The applications for bail moved by the petitioners before the jurisdictional Magistrate and then before the Court of learned Additional Sessions Judge, Ludhiana have been dismissed.

3. It is argued by learned counsel for the petitioners that they have been falsely implicated in this case. Their alleged involvement with Deepanshu Srivastav in evasion of tax has not been established. They had been making all purchases and sales by making advance information to the concerned departments and had been giving payments through banking channels. They had been conducting the business of their firms in normal course. They are neither instrumental in issuance of any fake invoices nor beneficiaries of alleged ITC. The provisions of Section 132(1) of the CGST Act have been wrongly invoked. Their detention is in violation of Articles 14 and 21 of the Constitution of India and has been effected without following due process of law. The trial would take considerable time to conclude. The subject offences are triable by the Magistrate. The evidence to be tendered by the respondent is documentary and electronic in nature. There are no chances of their tampering with such evidence or intimidating or influencing the witnesses, who are official witnesses only. They have been arrested on suspicion. They have clean antecedents with permanent abodes of business. They are no flight risks.

4. It is further argued that punishment pr