Mukesh Jalan Vs State of Assam And 2 Ors. (Gauhati High Court)
The Gauhati High Court considered a bail application filed under Section 483 of the BNSS, 2023 by the petitioner, who had been arrested in Case No. CT/ENF/ARST/2026/08 under Section 132(5) of the Assam Goods and Services Tax Act, 2017. The petitioner sought release on bail following his arrest in connection with allegations relating to wrongful availment of input tax credit (ITC).
The petitioner was the Director of M/s. Sadguru Engineering and Allied Services Pvt. Ltd., which had been awarded a highway construction project by NHIDCL. The company had engaged M/s. Shiva Harlalka to execute the work under an agreement under which the company was to provide operational assistance, logistical coordination and materials required for execution of the project. Financial transactions between the parties were carried out through bank accounts.
Subsequently, disputes arose between the parties regarding financial claims, reconciliation of accounts and release of payments.
According to the petitioner, M/s. Shiva Harlalka generated and uploaded nine e-invoiced works contract invoices in its GST returns. Thereafter, without the knowledge or consent of M/s. Sadguru Engineering and Allied Services Pvt. Ltd., the supplier unilaterally issued corresponding credit notes through its own GST registration and statutory return filing mechanism. The petitioner asserted that the company had no role in generating the credit notes or in the subsequent amendments made by the supplier. Out of the nine credit notes, only one was accepted, while the remaining eight were rejected.
