HC Grants Bail in Fake ITC Case After 2-Month Custody, No Recovery

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  • Last Updated on 31 May, 2025

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Fake ITC bail

Case Details: Arvind Kumar vs. Directorate General of GST Intelligence, Amritsar - [2025] 174 taxmann.com 950 (Punjab & Haryana)

Judiciary and Counsel Details

  • Sandeep Moudgil, J.
  • Nikhil Ghai, Adv. for the Petitioner.
  • Sunish Bindlish, Adv. for the Respondent.

Facts of the Case

The petitioner, accused in a case involving alleged fraudulent availing of input tax credit (ITC), was arrested on charges of utilizing fake ITC invoices purportedly issued by fictitious firms operated by two co-accused persons, thereby causing an estimated loss of Rs. 18.22 crores to the State Exchequer under Section 69 read with Section 132 of the CGST Act and Punjab GST Act.

The petitioner submitted that the main accused had already been granted bail by another High Court, that other co-accused named by him were being interrogated, and that no recovery was made from his premises. He contended that his antecedents were clean and prayed for regular bail. The matter was accordingly placed before the Hon’ble Punjab and Haryana High Court.

High Court Held

The Hon’ble Punjab and Haryana High Court held that the petitioner had already undergone incarceration for over two months and six days, which constituted sufficient detention under the circumstances. The Court noted that the main accused had been granted bail and that no incriminating material was recovered from the petitioner’s premises.

It further observed that other persons named by the petitioner were under interrogation and reiterated the fundamental principle of criminal jurisprudence that no person is to be considered guilty until proven beyond reasonable doubt. Emphasising the right to a speedy trial as a part of the reasonable, fair, and just procedure under Article 21 of the Constitution of India, the Court concluded that continued detention without trial served no purpose. The petitioner was directed to be released on regular bail upon furnishing bail and surety bonds to the satisfaction of the trial court.

List of Cases Reviewed

  • Dataram v. State of Uttar Pradesh 2018(2) R.C.R. (Criminal) 131 (para 5)
  • Balwinder Singh v. State of Punjab [SLP (Crl.) No. 8523 of 2024] (para 5), followed

List of Cases Referred to

  • Dataram v. State of Uttar Pradesh 2018(2) R.C.R. (Criminal) 131 (para 4)
  • Balwinder Singh v. State of Punjab [SLP (Crl.) No. 8523 of 2024] (para 4).

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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