Punjab & Haryana High Court Grants Bail in ₹116.53 Crore GST Evasion Case: Trial Delay and Filing of Complaint Were Decisive Factors

Case Overview

Case: Sovit Bansal Vs Directorate General of GST
Court: Punjab and Haryana High Court
Petitions: CRM-M-38861-2025, CRM-M-42749-2025, and CRM-M-44075-2025
Relevant Provisions: Section 483 of the Bharatiya Nagarik Suraksha Sanhita, 2023; Sections 132(1)(a) and 132(1)(c) read with Section 132(1) of the CGST Act, 2017; Section 20 of the IGST Act, 2017; Punjab GST Act, 2017

Background and Allegations

This matter involved three consolidated bail petitions heard together by the Punjab and Haryana High Court, all arising from the same complaint. The three accused persons — Sovit Bansal, Karan Bansal, and Shri Sanjeev Kumar Bansal — sought regular bail under Section 483 of the Bharatiya Nagarik Suraksha Sanhita, 2023 in connection with complaint No. 15530 dated 27.06.2025, pending before the JMIC, Ludhiana.

The Directorate General of GST alleged that Shri Sanjeev Kumar Bansal, along with his two sons Karan Bansal and Sovit Bansal, had orchestrated a large-scale clandestine sale of goods through six business entities:

  • M/s Shree Salasar Steel Tubes & Co.
  • M/s Shree Salasar Balaji Steel Tubes
  • M/s K.T.B. Alloys
  • M/s A.K.M. Alloys
  • M/s Ram Ji Concast
  • M/s Bharat Steel Industries

Acting on confidential intelligence, the respondent agency carried out search operations under Section 67(2) of the CGST Act, 2017 on 22.02.2025, covering the business premises of all six firms as well as the residential addresses of their partners and employees. Based on evidence gathered through these searches, the investigating authority concluded that the three accused were the principal architects of a widespread scheme of clandestine trade.

Nature of Alleged GST Fraud

The complaint detailed two distinct streams of alleged tax evasion:

Suppression of Sales Without Invoices

The agency alleged that goods were sold on a large scale without the issuance of actual invoices, resulting in suppression of GST liability amounting to ₹69.99 crores.

Fraudulent ITC Availment

It was further alleged that Input Tax Credit (ITC) totalling ₹46.53 crores was fraudulently availed and utilised, purportedly from fictitious or non-existent supplier firms from which no actual receipt of goods took place.

Total alleged GST evasion: ₹116.53 crores