IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH Date of Decision: 18.12.2025 Sanket Mittal …Petitioner.

v.

Central GST Department …Respondent.

CORAM: HON’BLE MS. JUSTICE AARADHNA SAWHNEY.

Present: Mr. Dheeraj Mittal, father of Mr. Sanket Mittal, petitioner None for the respondent.

****

AARADHNA SAWHNEY, J. (Oral)

1. Upon a call given by Punjab and Haryana High Court Bar Association, the Members of the Bar are abstaining from work.

2. This petition for grant of bail under Section 483 of BNSS, has been filed by petitioner, an accused in criminal complaint No. COMA/518/2025 dated 5.7.2025, titled “Mr. Vikas Kumar Verma, Superintendent, CGST Commissionerate v. Sh. Sanket Mittal and another,” under Section 132 of Central Goods Service Tax Act, 2017 (in short “the CGST Act”).

3. M/s Balaji Mobile Addition has been engaged in the trading of mobile phones (especially I-phones). On perusal of GST returns available on the GST Portal, it came to notice that M/s Balaji Mobile Addition had availed ITC from various suppliers including M/s Monit Enterprises, who had passed on ineligible ITC to the tune of Rs.30.4 crores to it during the period December, 2023 to March, 2024 using goods-less invoices. Accordingly, a show cause notice dated 19.3.2024 (Annexure P-2) followed by order dated 26.3.2024 (Annexure P-3) for cancellation of registration w.e.f. 29.2.2024 were issued. Against the order (Annexure P-3), an application for revocation of order was filed which was rejected vide order dated 30.4.2024 (Annexure P-4) passed by the Assistant Commissioner holding that the tax payer firm has availed ITC to the tune of Rs.30,54,15,229/- from one M/s Monit Enterprises. The statutory appeal preferred by petitioner against the order (Annexure P-4) was allowed vide order dated 8.5.2024 (Annexure P-5) by revoking the cancellation and the registration of the aforesaid firm was restored. Thereafter, the respondent proceeded to freeze the ITC ledger of the firm by invoking Rule 86A of the CGST Rules against the alleged ITC availment amounting to Rs.30,54,15,229/-. Against the action of the respondent, M/s Balaji Mobile Addition filed CWP-1835802924. This Court vide order date 24.9.2024 (Annexure P-6) issued an interim order directing the respondent to release the account as well as the electronic credit ledger. The said writ petition is pending trial adjudication. On the basis of said allegations of fraudulent availment and passing of ITC, petitioner, who looks after business activities of M/s Balaji Mobile Addition was arrested, on 6.5.2025. Thereafter, respondent moved an application before learned Chief Judicial Magistrate, Faridabad seeking permission to record the statement of petitioner on 8.5.2025, which was allowed. Petitioner, who was arrested on 06.05.2025 has been in custody since then. Complaint was filed before the competent Court after completion of necessary investigation/enquiry, the same is pending before the Court.

4. Petitioner moved an application for grant of regular bail before learned Chief Judicial Magistrate, Faridabad, which came to be dismissed in terms of order dated 13.5.2025. Against the order dated 13.5.2025, petitioner moved an application before the learned Additional Sessions Judge, Faridabad, which also came to be dismissed in terms of order dated 25.7.2025 (Annexure P-4). Aggrieved of the same, present petition has been filed.

5. Shri Dheeraj Mittal, father of the petitioner submits that petitioner has been falsely implicated in the present case. The respondent issued a show cause notice dated 19.3.2024 for the cancellation of GST registration of M/s Balaji Mobile Addition which was followed by cancellation order dated 26.3.2024. Petitioner filed revocation application which was dismissed on 30.4.2024 and thereafter, filed a statutory appeal before the appellate authority, which was allowed and the cancellation was revoked. Respondent also proceeded to freeze the ITC credit ledger of M/s Balaji Mobile Addition for ITC availme