Punjab and Haryana High Court: Baldeep Singh Sapra Vs State (Directorate General of GST Intelligence)
The Punjab and Haryana High Court has delivered a significant judgment regarding the grant of regular bail in cases involving alleged fraudulent Input Tax Credit (ITC) availment. In the matter of Baldeep Singh Sapra Vs State (Directorate General of GST Intelligence), the Court ruled in favor of the petitioner, emphasizing that continued incarceration is unjustified when the investigation is concluded, and the trial is unlikely to finish in the near future.
Factual Background of the Case
The proceedings stemmed from an investigation initiated by the Directorate General of GST Intelligence (DGGI). The authorities registered a case alleging offences under Section 132(1)(b) & (c) read with Sections 132(1)(i) and 135(5) of the Central Goods and Services Tax Act, 2017 (CGST Act). The petitioner was taken into custody on 28.05.2025.
The prosecution's case relied on intelligence suggesting that the assessee's company, 'M/s PMI Smelting Private Limited', was involved in availing ineligible ITC amounting to approximately ₹30.21 Crores. The authorities alleged that this was achieved through a network of fake invoices procured from non-existent entities such as 'M/s P.C. Techno Solutions', which in turn claimed ITC from other questionable firms like 'M/s Maa Vaishno Enterprises' and 'M/s S.S. Enterprises'.
According to the respondent, searches conducted at the business and residential premises revealed that the vehicles purportedly used for transporting goods were, in reality, scooters, cars, or three-wheelers incapable of carrying commercial loads. This led the authorities to conclude that the invoices were generated without any actual movement of goods to defraud the State Exchequer.