Vansh Jain vs. Additional Directorate General Of GST Intelligence And Another
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CRM-M-20084-2025 102 (2nd case) IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH CRM-M-20084-2025 (O&M) Date of decision : 28.04.2025 Vansh Jain …..Petitioner Versus Additional Directorate General of GST Intelligence and another ...Respondents CORAM: HON'BLE MR. JUSTICE MAHABIR SINGH SINDHU Present: Mr. Aman Bansal, Advocate for the petitioner. Mr. Sourabh Goel, Advocate, Senior Standing Counsel with Ms. Geetika Sharma, Advocate and Mr. Kush Goyal, Advocate for respondent. MAHABIR SINGH SINDHU, J. CRM-15744-2025 Present application has been filed under Section 528 of Bharatiya Nagarik Suraksha Sanhita, 2023 (for short ‘BNSS’) for placing on record affidavit of the petitioner. The same is allowed as prayed for, subject to all just exceptions. Registry to do the needful. CRM-M-20084-2025 Present petition under Section 482 of BNSS has been filed for grant of pre-arrest bail to the petitioner in complaint No.DIN No.202502DNN5000000BP68 under Section 132(1)(b) and 132(1)(c) of Central Goods and Service Tax Act, 2017 (for short ‘GST Act’) read with provisions of Punjab Goods and Service Tax Act, 2017 (for short ‘Punjab GST Act’), registered by Additional Directorate General of GST Intelligence, 51D, Zonal Unit, Sarabha Nagar, Ludhiana. -1- DIWAKER GULATI 2025.05.08 11:55 I attest to the accuracy and integrity of this document
CRM-M-20084-2025
Allegations are that petitioner is proprietor of M/s Kashbhi Accessories Point and he availed Input Tax Credit (for short ‘ITC’) of Rs.1.60 Crore through fake GST invoices without any actual receipt or supply of goods/services.
Contends that petitioner has been falsely implicated in the present case. Further contends that petitioner is a sleeping partner of M/s Kashbhi Accessories Point; thus, he has no role in the commission of alleged crime. Also contends that petitioner was granted interim protection by the Co-ordinate Bench on 09.04.2025 and he is still ready to join the proceedings. Lastly contends that it is an admitted fact by the respondent-Department that petitioner is not engaged in any kind of business activity relating to the above Firm; rather day-to-day functioning is being looked after by co-accused Sarthak Jain.
Though there is no formal notice of motion in the case, but Mr. Saurabh Goel, learned counsel had already appeared on behalf of respondent No. 1 and he has filed written response also.
Learned counsel for respondent No.1 submits that petitioner is the sole proprietor of M/s Kashbhi Accessories Point and despite four repeated notices, he has not come forward to join the investigation; rather deliberately evading the process of law. Again submits that petitioner availed the benefit of ITC in violations of provisions of GST Act and Punjab GST Act. Further submits that custodial investigation of the petitioner is very much necessary to -2- DIWAKER GULATI 2025.05.08 11:55 I attest to the accuracy and integrity of this document
CRM-M-20084-2025 unearth the true facts leading to commission of alleged crime; thus, he does not deserve the concession of pre-arrest bail.
Heard both sides. Perused the paper-book.
Before proceeding further, it would be relevant to recapitulate para Nos.4 & 5 of preliminary submissions raised by respondent No.1 and which read as under:- “4. It is submitted that the proprietorship firm of Vansh Jain is involved in availment of ineligible ITC from the following suppliers in the table which are found to by registered by means of fraud, wilful misstatement or suppression of facts and have passed on ineligible input tax credit to M/s Kashbhi Accessories Point as tabulated below: In-eligible ITC availment by M/s Kashbhi Accessories Point (03CFDPJ7189F1ZF): Sr. No. GSTIN Trade Name ITC passed on Reasons
for Cancellation/Rem arks 1 03AAICV2738 D1ZK VOICETELE SOLUTIONS PRIVATE LIMITED 29,08,705 RP has contravened the provision of the act and rules 2 03GEVPK1895 E1Z3 ARIHANT
YARN AND CLOTH TRADERS 12,55,182 Admitted during the statement
for availing
and passing
the fraudulent
Input Tax Credit (ITC) 3 03KBKPK4252 F1ZP SUHAAS
YARN TRADERS 12,16,144 The taxpayer was found non-existent at declared PPOB. 4 03BJPPR6396 R1ZZ R.D YARN TRADERS 11,15,396 The taxpayer was found non-existent at declared PPOB. 5 03NNBPS4532 L1ZM PANJAB ENTERPRISES 9,27,120 In special drive, the taxpayer was found -3- DIWAKER GULATI 2025.05.08 11:55 I attest to the accuracy and integrity of this document
CRM-M-20084-2025 non-existent
at declared
PPOB. Calls made to registered mobile number were not answered/switche d off 6 03DUWPA1415 G1ZY SAI ENTERPRISES 8,46,696 Section 29(2)(e)- registration obtained by means of fraud, wilful misstatement
or suppression
of facts. 7 03AALCM0973 A1ZV MEERAJ KNITWEAR PVT. LTD. 7,96,648 The taxpayer was found non-existent at declared PPOB. 8 03HECPS9422 F1ZG SHIV
SHAKTI ENTERPRISES 7,68,353 Section 29(2)(e)- registration obtained by means of fraud, wilful misstatement
or suppression of facts 9 03AAHCT7882 R1ZF TEYHAR KNITWEARS PRIVATE LIMITED 6,85,961 Rule 21(a)- person does not conduct any business from declared place of business 10 03JTOPS5303 G1ZH SHUBH ARAMBH INDUSTRIES 6,68,406 The taxpayer was found non-existent at declared PPOB. 11 03HGCPS9725 K1ZV B.S CLOTH AND YARN TRADERS 6,21,763 The taxpayer was found non-existent at declared PPOB. 12 03AIJPJ6957E 2Z7 AASTHA INTERNATIONAL 5,45,442 Section 29(2)(e)- registration obtained by means of fraud, wilful misstatement
or suppression of fact 13 03EMDPR1169 C1ZC J S ENTERPRISES 1,99,870 Section 29(2)(e)- registration obtained by means of fraud, wilful misstatement
or -4- DIWAKER GULATI 2025.05.08 11:55 I attest to the accuracy and integrity of this document
CRM-M-20084-2025 suppression of fact 14 03EEOPR4688 B1Z6 JAI
DURGA TRADERS 1,83,060 The taxpayer was found non-existent at declared PPOB. 15 03ALIPP5942R 1ZF S.T.ENTERPRISES 15,65,668 Section 29(2)(e)- registration obtained by means of fraud, wilful misstatement
or suppression of facts 16 03HHLPM6518 Q1ZL ENTERPRISES 6,00,846 Discrepancies found
during physical verification. 17 03AJYPD2747 A1ZH SHREE
BALAJI EXIM INDIA 4,77,788.5 Section 29(2)(e)- registration obtained by means of fraud, wilful misstatement
or suppression of facts 18 03ELRPA2612 C1ZR AMAN TRADERS 2,84,688 Section 29(2)(e)- registration obtained by means of fraud, wilful misstatement
or suppression of facts 19 03FCDPR4964 L1Z4 RAJA HOSIERY 1,87,762.5 Rule 21(a)- person does not conduct any business from declared place of business 20 03NZTPS3763P 1Z1 SS Enterprises 152625 Section 29(2)(e)- registration obtained by means of fraud, wilful misstatement
or suppression of facts 21 03LBCPS6799 C1Z6 JAI
DURGA ENTERPRISES 1,44,822 Section 29(2)(e)- registration obtained by means of fraud, wilful misstatement
or suppression of facts 22 03KRQPK8302 A1ZX A.S ENTERPRISES 1,25,217 The taxpayer was found non-existent -5- DIWAKER GULATI 2025.05.08 11:55 I attest to the accuracy and integrity of this document
CRM-M-20084-2025 at declared PPOB. Total 1,62,78,163
That the proprietorship firm of the petitioner /s Kashbhi Accessories Point was indulged in wrongful availment/utilization of fraudulent ITC in violations of provisions of the CGST Act, 2017 and Punjab GST Act, 2017 and Rules made thereunder.”
From perusal of above extract, prima facie, it is evident that petitioner is the proprietor of M/s Kashbhi Accessories Point.
Apart that petitioner was granted interim protection by the Co-ordinate Bench on 09.04.2025, but despite three notices (prior to the interim order) and one subsequent thereto, he did not come forward; rather his whereabouts are not known. Thus, petitioner is evading the process of law and misusing the interim concession; hence he does not deserves the concession of pre-arrest bail.
In view of the above, there is no option except to dismiss the petition.
Ordered accordingly.
It is clarified that above observations be not construed as an expression of opinion on merits of the case in any manner. Pending application(s), if any, shall also stand disposed off. 28.04.2025 (MAHABIR SINGH SINDHU) d.gulati JUDGE Whether speaking / reasoned : Yes No Whether Reportable : Yes No -6- DIWAKER GULATI 2025.05.08 11:55 I attest to the accuracy and integrity of this document
Reproduced from the public record of the Punjab and Haryana High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.