DGGI Vs Het Ram Sharma (Patiala House Courts, Delhi)
New Delhi: Patiala House Courts in Delhi has granted anticipatory bail to Het Ram Sharma, a director of M/s Rajnandini Metal Limited, in connection with an alleged ₹75 crore fake GST Input Tax Credit (ITC) fraud case. The decision comes after an application seeking pre-arrest bail was filed by Sharma, who had been under investigation by the Directorate General of GST Intelligence (DGGI) for allegedly orchestrating a scheme to claim ineligible ITC through a network of intermediary firms.
Sharma’s legal team argued that he is a law-abiding citizen and an indigenous entrepreneur, fully cooperating with the ongoing investigation. They highlighted that DGGI officers had visited his factory and residence on February 14, 2025, and he had subsequently appeared at their office for questioning, providing a statement on February 15, 2025. The defense contended that the applicant’s liberty was endangered due to the apprehension of coercive action under Section 69 of the CGST Act, 2017, despite his willingness to cooperate. It was also pointed out that the maximum punishment for the alleged offenses was up to five years, and the evidence primarily appeared to be documentary. Reference was made to the Supreme Court’s judgment in Gurbakash Singh Sibbia and others v. State of Punjab (1980) 2 SCC 565, which established the maintainability of anticipatory bail applications. Additionally, the defense cited Radhika Aggarwal v. Union of India and others (2005 INSC), suggesting that anticipatory bail is permissible even at the summons stage by the GST Department. Other judicial precedents cited by the applicant included Rajnandini Metal Ltd Vs Union of India and others, Tarun Jain Vs Directorate General of GST Intelligence DGGI, Kishan Murari Gupta Vs State of UP, Hardeep Singh Banga Vs State of Uttar Pradesh, Neha Agarwal Anrs Vs Superintendent Anti-Evasion CGST, Mumbai Central, Nishant Garg, Director Vs Union of India and others, Abdul Shaji Vs Commissioner of Central Tax and Central Excise (Kochi) and anr., Paresh Anubhai Mawani Vs Superintendent (Central Tax) and anr., Smt. Prathipati Pulla Rao, and others Vs State of Andhra Pradesh, Surekha Vs State of Gujrat, Ramesh Chandra Mehta Vs State of West Bengal, Shree Parvati Metals Vs Union of India and Another, Arvind Kejriwal Vs Central Bureau of Investigation, and Sanjay Chandra Vs Central Bureau of Investigation.
