Arun Garg Vs State of Haryana (Punjab and Haryana High Court)
The petition was filed under Section 483 BNSS seeking regular bail by the petitioner, an accused in COMA No. 247 of 2025 for offences under Section 132 of the CGST Act, 2017. The allegations against him include operating a syndicate of nine taxpayer firms created with criminal intention to avail and pass fraudulent Input Tax Credit (ITC). These firms allegedly issued invoices without actual supply of goods, involving taxable value of Rs. 1,30,33,91,023 and fraudulent ITC of Rs. 23,66,02,499. The complaint details the formation of these firms, their alleged relation with the petitioner, and minimal or nil inward supplies reflected in GSTR-2A filings. According to the department, e-way bills showed discrepancies such as mismatches between goods weight and vehicle capacity, and absence of goods quantity. It was also stated that the petitioner’s accountant generated goods-less invoices on his instructions, and statements recorded under Section 70 of the CGST Act indicated that several persons acknowledged issuing such invoices and returning cash to the petitioner. The department alleged that the petitioner created bogus firms with intent to evade tax and was the mastermind directing the entire fraudulent scheme.
The petitioner’s earlier application for bail was rejected by the Additional Sessions Judge, Faridabad. Before the High Court, the petitioner argued that he had been falsely implicated, had cooperated with the investigation when summoned on 27.01.2025, and was arrested the next day. He submitted that he had legitimately sold goods to 278 buyers over several years involving GST liabilities of more than Rs. 10 crore, duly discharged through eligible ITC and proper returns. The petitioner contended that the investigation was complete, trial would take considerable time, and he had clean antecedents. Being a permanent resident of Faridabad and charged with offences carrying maximum imprisonment of five years, he sought bail, supporting his claim through several judgments.
