Case Summary
Case Title: Arvind Kumar v. Directorate General of GST Intelligence
Court Name: High Court of Punjab and Haryana, Chandigarh
Petition Number: CRM-M-24201-2025
Category of Dispute: Input Tax Credit
Date of Judgement: 15.05.2025
Relevant Sections: Section 132(1) of CGST Act, 2017 read with Punjab GST Act, 2017; Section 20 of IGST Act, 2017; Section 483 of BNSS, 2023
Coram: Hon’ble Mr. Justice Sandeep Moudgil
Facts of the Case [Para 1–2]
The petitioner, Arvind Kumar, proprietor of Bhumi Steel Traders (GSTIN: 03APLPK2516FIZA), was accused of availing fake Input Tax Credit (ITC) based on bogus invoices allegedly orchestrated by co-accused persons Sh. Dipanshu Srivastav and Mohit Kumar. The fraudulent transactions were reported to cause a loss of ₹18.22 crores to the State exchequer. The petitioner sought regular bail under Section 483 of BNSS, 2023, citing false implication and parity with co-accused who had already secured bail from Lucknow High Court.
Question(s) in Consideration [Para 1–2]
Whether the petitioner, accused of availing fraudulent ITC and causing significant revenue loss, is entitled to regular bail in light of the co-accused being granted bail and the petitioner’s cooperation in the investigation.
Observation of Court [Para 3–4]
The Hon’ble Court observed that:
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The petitioner had no prior criminal record and had already undergone incarceration for over two months.
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Nothing incriminating was recovered from his premises.
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Interrogation of other suspects was still ongoing and the petitioner was cooperating.
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Bail is the rule and jail is the exception, particularly where prolonged incarceration without trial may infringe Article 21 of the Constitution.
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Reference was made to the Apex Court rulings in Dataram v. State of UP and Balwinder Singh v. State of Punjab, highlighting the presumption of innocence and the right to a speedy trial.
Judgement of the Court [Para 5]
The Court allowed the petition and directed the release of the petitioner on regular bail upon furnishing requisite bail and surety bonds to the satisfaction of the trial Court or Duty Magistrate. It was clarified that the order shall not be construed as an expression of opinion on the merits of the case.
Between Fine Lines
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Bail was granted despite serious allegations due to the petitioner’s clean record and ongoing cooperation.
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Co-accused already granted bail played a role in establishing parity.
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No direct recovery or strong evidence yet against the petitioner.
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Emphasized that long incarceration without trial is unjust.
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Reinforces the constitutional guarantee of personal liberty under Article 21.
Summary of Referred Cases
| Name of Case | Citation | Summary | Verdict |
|---|---|---|---|
| Dataram v. State of Uttar Pradesh | 2018(2) R.C.R. (Criminal) 131 | Emphasized that bail is the rule and jail is the exception. | Bail principles reiterated |
| Balwinder Singh v. State of Punjab | SLP (Crl.) No. 8523/2024 | Inordinate trial delay violates Article 21 and justifies bail. | Bail upheld |
| Nikesh Tarachand Shah v. Union of India | 2017 (13) SCALE 609 | Historical background and liberal interpretation of bail provisions discussed. | Liberal bail norms upheld |
| Gurbaksh Singh Sibbia v. State of Punjab | (1980) 2 SCC 565 | Reinforced that bail is not to be withheld as punishment. | Bail guidelines affirmed |
| In Re-Inhuman Conditions in 1382 Prisons | (2017) 10 SCC 658 | Highlighted overcrowding in prisons and necessity of humane approach. | Advocated lenient bail |
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