Rohit Kumar Gupta Vs State of Punjab through State Tax Officer (Punjab and Haryana High Court)
The petitioner filed his first bail petition under Section 483 of the Bharatiya Nagarik Suraksha Sanhita, 2023, seeking regular bail in a complaint alleging offences under Section 132 of the Punjab/Central Goods and Services Tax Act, 2017, read with Section 69 of the Central Goods and Services Tax Act, 2017 and Section 187 of the Bharatiya Nagarik Suraksha Sanhita, 2023. The petitioner, proprietor of M/s Maa Steel, Ludhiana, had been arrested on 12.02.2026 following scrutiny of returns and E-Way Bills for the period from 01.04.2024 to 27.01.2026. The respondent alleged that invoices had been issued and received without actual movement or supply of goods, resulting in illegal availment of Input Tax Credit (ITC) and loss of approximately ₹9,66,64,194 to the State Exchequer.
The petitioner contended that he was engaged in a lawful business of trading iron and steel goods through a duly GST-registered concern and that the allegations regarding fraudulent ITC were baseless. He submitted that all relevant documents, including GST invoices and E-Way Bills, had been supplied to the investigating authorities, demonstrating that actual business transactions had taken place. He further argued that his arrest violated the safeguards contained in Section 35 of the Bharatiya Nagarik Suraksha Sanhita, 2023. According to the petitioner, the evidence was entirely documentary in nature, he had cooperated during the investigation, and continued incarceration served no useful purpose. He also pointed out that he had remained in custody for more than three-and-a-half months while the maximum punishment prescribed was limited.
