Saurabh Bansal Vs Directorate General of GST (Punjab And Haryana High Court)
The Punjab and Haryana High Court considered a petition seeking regular bail in complaint No. 58610 dated 15.11.2025, filed under Sections 132(1)(a) and 132(1)(c) read with Section 132(1) of the CGST Act, 2017 and Section 20 of the IGST Act, 2017. The matter is pending before the Judicial Magistrate 1st Class. The allegations against the petitioner are that he availed input tax credit (ITC) amounting to ₹26.19 crores by producing fake invoices issued by non-existent or bogus firms without any actual supply of goods.
On behalf of the petitioner, it was argued that the respondent-Department had earlier issued a notice and conducted investigation proceedings in which the petitioner duly participated. He deposed that he was a trader who placed orders through a broker and was unaware of the source of goods. It was further contended that he appeared before the Department whenever called to explain the invoices. Despite this, after a lapse of more than one and a half years, he was taken into custody on 18.09.2025. The complaint was filed on 15.11.2025, and the matter remains at the pre-charge stage, with pre-charge evidence yet to be led. The case is fixed before the trial Court on 02.03.2026. The petitioner has undergone more than five months of custody in a case triable by a Magistrate. It was also submitted that no proceedings have been initiated by the Department to recover the allegedly wrongful ITC benefit and that the petitioner’s criminal liability is yet to be determined. In view of the custody period and the nature of trial, bail was sought.
