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Goods and Services Tax

P&H HC Denied Anticipatory Bail Due to Alleged Fake ITC Circulation

Case Law Details

TaxGuru Citation
2026 taxguru.in 1322
Case Name
Jitender Saharan Vs Senior Intelligence Officer (Punjab Haryana High Court)
Date of Judgement/Order
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Jitender Saharan Vs Senior Intelligence Officer (Punjab Haryana High Court)

The petitioner approached the Punjab and Haryana High Court under Section 482 of the Bharatiya Nagarik Suraksha Sanhita, 2023, seeking anticipatory bail in a case registered by the Directorate General of GST Intelligence (DGGI), Chandigarh Zonal Unit. The case was initiated under Sections 132(1)(b), 132(1)(c) read with Section 132(5) of the Central Goods and Services Tax Act, 2017 and Section 20(xv) of the IGST Act, 2017, alleging large-scale fraudulent availment and circulation of Input Tax Credit (ITC).

According to the allegations, four GST-registered entities were found to have availed, utilised, and passed on ineligible ITC far in excess of the credit reflected in their GSTR-2B returns, without any actual supply of goods or services. A comparative analysis of GSTR-3B, GSTR-2B, and ITC ledger data allegedly revealed utilisation of ITC amounting to about ₹9.88 crore without corresponding supplies. The petitioner, who was a partner or director in two of these firms, was alleged to be directly involved in managing operations and facilitating the fraudulent circulation of ITC. Several of the firms were also found to be non-existent at their registered addresses.

The petitioner contended that he had been falsely implicated, that no FIR or complaint had been filed, and that summons were repeatedly issued under Section 70 of the GST Act. He argued that he was associated with only two firms, had no financial decision-making powers, did not appoint the chartered accountant, and that custodial interrogation was unnecessary. It was further submitted that no recovery was pending from him and that he was willing to cooperate with the investigation.

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Author Info

CA Sandeep Kanoi
Qualification: CA in Job / Business
Company: Taxguru Consultancy
Location: Mumbai, Maharashtra
Articles Published: 20,887

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