Regular Bail Granted in Fake ITC Case After Completion of Investigation

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  • Last Updated on 23 June, 2026

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Regular Bail in Fake ITC Case

Case Details: Kamalpreet Singh vs. State (Directorate General of GST Intelligence) [2026] 187 taxmann.com 745 (Punjab & Haryana)

Judiciary and Counsel Details

  • Rajesh Bhardwaj, J.
  • Nilesh Bhardwaj, Ms Vanshika Daaria & Ms Malini Singh, Advs. for the Petitioner. 
  • Sourabh Goel, Sr. Standing Counsel, Ms Deify Jindal, Ms Anju Bansal & Ms Geetika Sharma, Advs. for the Respondent.

Facts of the Case

The petitioner was prosecuted for offences under the GST law on allegations of wrongful availment and passing of fake input tax credit (ITC) through 11 fictitious firms, resulting in substantial loss to the revenue. Following his arrest, his application for regular bail was rejected by the Sessions Court. The prosecution alleged that the petitioner had fraudulently availed and passed on the ITC of a significant amount. In defence, the petitioner contended that he had been falsely implicated, was merely acting as an accountant/consultant, had not derived any unlawful benefit or acquired any disproportionate assets, and had fully cooperated with the investigation. He further submitted that all relevant records were already in the possession of the department. By the time the matter came before the High Court, the investigation had been completed, the complaint had been filed, and charges had already been framed.

High Court Held

The High Court held that the allegations relating to wrongful availment and passing of fake ITC, constituting offences under Section 132 of the CGST Act and the Punjab GST Act and attracting the power of arrest under Section 69, were matters to be examined during the course of the trial. The Court observed that the correctness of the allegations could be determined only after an appreciation of the evidence led by the parties. Taking note of the fact that the investigation had been completed, all relevant records were already with the department, the trial was likely to take considerable time, and the petitioner had remained in custody for approximately six months, the Court allowed the petition and granted regular bail, subject to furnishing the requisite bail bonds.

List of Cases Referred to

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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