Pawan Kumar Vs State of Punjab and others (Punjab and Haryana High Court)
GST Fake Invoice Accused Granted Bail Because Evidence Was Primarily Documentary; Bail Granted in ₹29.50 Crore ITC Fraud Case Because Further Custodial Interrogation Was Not Required; Punjab & Haryana HC Grants Bail in Fake ITC Case Because Trial and Adjudication Will Take Time; Documentary Nature of GST Fraud Evidence Reduced Risk of Witness Tampering; Bail Allowed in GST Fraud Case Because Maximum Punishment Was Five Years; Punjab & Haryana HC Reiterates That Bail Is Rule Even in Economic Offence Cases; GST Input Tax Credit Fraud Accused Released on Bail Subject to Strict Safeguards: Punjab & Haryana
The petitions before the Punjab and Haryana High Court sought regular bail under Section 483 of the Bharatiya Nagarik Suraksha Sanhita, 2023 in a complaint filed under Sections 132(1)(b) and 132(1)(c) of the Central Goods and Services Tax Act, 2017. The complaint alleged fraudulent availment of Input Tax Credit (ITC) through fake invoicing and fictitious firms.
According to the complaint filed by the State Tax Officer, State Intelligence and Preventive Unit, Ludhiana, the petitioners were partners of M/s Monga Brothers Unit-II, Ludhiana. Investigations were initiated after information was received that the firm was engaged in issuing fake invoices through fictitious entities and had made inward supplies worth approximately ₹70 crores during financial year 2023-24 and ₹93 crores during financial year 2024-25. It was alleged that the firm had fraudulently claimed ITC of approximately ₹29.50 crores.
