2026 (1) TMI 771

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...., 132(1)(C) read with 132(5) of Central Goods and Services Act, 2017 punishable under Sections 132(1)(I) of the CGST Act, 2017 read with Section 20(XV) of the IGST Act, 2017. 2. Allegations against the petitioner are that information was gathered that M/s Steel N Steel (GSTIN: 03AGOPG9408N2ZZ), is proprietary firm which is engaged in availing and passing on of fraudulent ITC. The registered address/principal place of business of the firm is "Khasra No. 41/6/2, Khata No. 242/401, Dera Bassi Road, Next to Beebows Industrial Equipments, Village Saidpura, Dera Bassi Industrial Area, SAS Nagar, Punjab-140507". Investigation was initiated to ascertain the genuineness of the firm and its business. During investigation, it had come to the light ....

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....t is stated that investigations revealed that applicant Rattan Kumar Garg is the key person in the case of availment of Input Tax Credit to the tune of Rs. 7.46 Crores by his firm M/s Steel N Steel and same was availed by using the said firm. The modus operandi adopted by accused was to avail Input Credit Tax under the cover of Fake Invoices, whereas the disputed invoices were received by the accused firm without goods. Using the said firm, accused had passed on fraudulent Input Tax Credit to the tune of Rs.6.20 Crores to the multiple recipients/beneficiaries. It is stated that accused is involved in availment of fraudulent ITC without actual receipt of goods/services with taxable value amounting to Rs.41.48 Crores and ITC amounting to Rs. ....

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.... take a sufficiently long time to conclude. The petitioner is in custody since 06.08.2025 and since the trial will take a long time to conclude, his further detention is not required and he may be released on bail. In support of his contentions, learned Senior Counsel has cited 2025:PHHC:084887 - Manoj Gupta Vs. Union of India and others, judgment dated 28.04.2025 passed by Hon'ble Supreme Court in SLP (Criminal) No.4349 of 2025 titled Vineet Jain Vs. Union of India and 2025:PHHC:097148 - Manish Kumar Vs. Directorate General Goods and Services Tax Intelligence, Zonal Unit, Ludhiana. 5. On the other hand, learned counsel for the respondent has opposed the bail and argued that the petitioner has evaded tax liability of huge amount of money....

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....tra ordinary circumstances. By setting aside the impugned order dated 24th January, 2025 of the High Court of Judicature for Rajasthan, Bench at Jaipur, we grant bail to the appellant. The appellant shall be immediately produced before the Trial Court and the Trial Court shall enlarge him on bail on appropriate terms and conditions till the conclusion of the trial. The appeal is accordingly allowed." 7. A perusal of the afore-said order shows that the Hon'ble Supreme Court observed that the maximum punishment prescribed for the said offence is five years. Charge-sheet/ complaint has already been filed and appellant was in custody for seven months and the offence in question is triable by the Court of a Magistrate. The p....