Bail Granted in Fake ITC Case After 5 Months’ Custody | HC

  • Blog|News|GST & Customs|
  • 2 Min Read
  • By Taxmann
  • |
  • Last Updated on 8 February, 2026

Latest from Taxmann

fake ITC arrest bail

Case Details: Rattan Kumar Garg vs. Directorate General of GST Intelligence - [2026] 182 taxmann.com 781 (Punjab & Haryana)

Judiciary and Counsel Details

  • Yashvir Singh Rathor, J.
  • Anand Chhibbar, Sr. Adv., Ms Swati Vashisth & Utkarsh Khatana, Advs. for the Petitioner.
  • Anish Babba, Adv. for the Respondent.

Facts of the Case

The petitioner was arrested under Section 132 of the CGST Act and Punjab GST Act for alleged fraudulent availment of ITC without actual receipt of goods/services and for making bogus supplies. It was alleged that the tax involved exceeded Rs. 5 crore and, therefore, the offences were stated to fall under clauses (b) and (c) of Section 132(1), which are cognizable and non-bailable and punishable with imprisonment up to five years and fine. The matter was accordingly placed before the High Court.

High Court Held

The High Court held that the petitioner deserved to be released on bail as continued detention would serve no useful purpose. It was observed that the petitioner had been in custody for over five months and that the maximum punishment for the offence under Section 132 is five years; further, offences involving evasion of ITC up to Rs. 5 crore are bailable. The Court noted that all relevant documents had already been seized and the case was based on documentary evidence. Since the offences were subject to magisterial trial and the trial was likely to be prolonged, the Court granted bail under Section 69, read with Section 132 of the CGST Act.

List of Cases Referred to

Disclaimer: The content/information published on the website is only for general information of the user and shall not be construed as legal advice. While the Taxmann has exercised reasonable efforts to ensure the veracity of information/content published, Taxmann shall be under no liability in any manner whatsoever for incorrect information, if any.

Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that’s easy to read and remain consistent across all imprint and digital publications are applied

Leave a Reply

Your email address will not be published. Required fields are marked *

«
»

Everything on Tax and Corporate Laws of India

To subscribe to our weekly newsletter please log in/register on Taxmann.com

Author: Taxmann

Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that's easy to read and remain consistent across all imprint and digital publications are applied