Mukesh Kumar Vs Additional Assistant Director (Madras High Court)
The petitioner, Mukesh Kumar, sought bail before the Madras High Court after being arrested on 14 August 2025 for alleged offences under Sections 132(1)(b), 132(1)(c), and 132(5) of the Central Goods and Services Tax (CGST) Act, 2017. The Directorate General of GST Intelligence (DGGI) initiated an investigation against M/s. Naklank Enterprises, which revealed that its suppliers were non-existent and had generated fake invoices to pass on fraudulent Input Tax Credit (ITC) to 25 other firms (Level-2 units). These Level-2 units further passed on ineligible ITC to three Level-3 firms — M/s. Parth Steel Alloys, M/s. Jay Enterprises, and M/s. Dhanlaxmi Trading.
The petitioner was alleged to be managing these three Level-3 entities and also working as Manager of M/s. Shri Ram Alloys (Level-4 unit), which received major outward supplies from the Level-3 units. A search conducted on 11 August 2025 at all four firms revealed that the petitioner operated the three dummy firms from the premises of M/s. Shri Ram Alloys. The purported proprietors of these firms were found to be low-level employees such as labourers, staff, and cooks working for Shri Ram Alloys.
The investigation found that the petitioner managed all operations, including invoice generation, e-way bill processing, and banking transactions. Using the “Gimbooks” mobile application, he allegedly generated fake invoices. Statements recorded from the petitioner on 11 and 13 August 2025 disclosed that he had availed fraudulent ITC of ₹10.41 crore and passed on ineligible ITC worth ₹9.35 crore, totalling ₹19.76 crore. On this basis, the complaint was registered.
