The Punjab and Haryana High Court has granted regular bail to an accused booked under the provisions of the Central Goods and Services Tax (CGST) Act in a case involving allegations of fraudulent availment and passing on of Input Tax Credit (ITC) worth over ₹66.60 crore.
The bench of Justice Rajesh Bhardwaj observed that the accused had already remained in custody for more than one year, the investigation had been completed, and the trial was likely to take considerable time.
As per the prosecution case, the GST department had conducted an inspection under Section 67(1) of the CGST Act at the premises of M/s Asim International Tradixim in Gurugram on December 31, 2024, which was allegedly found to be closed and non-operational. Subsequently, search proceedings were conducted on February 20, 2025, during which stocks of goods were recovered from the premises. The authorities alleged that the petitioner failed to produce purchase invoices, e-way bills and other supporting records relating to the seized goods.
According to the complaint, during the investigation, the petitioner could not establish the genuineness of inward and outward transactions through invoices, payment proofs or transport-related documents. The department alleged that the accused had availed fraudulent ITC amounting to ₹66,60,13,889 and further passed on fraudulent ITC amounting to ₹66,64,82,685 through bogus invoices without actual supply of goods or services.
The GST department further alleged that the accused had created two entities — M/s Asim International Tradixim and M/s Glacier Global Solution — using fake identification documents. According to the department, these entities were allegedly used for routing fake transactions and creating an artificial chain of tax credit claims.
Counsel for the petitioner argued before the High Court that the prosecution had falsely implicated him and contended that offences under Section 132 are compoundable under Section 138 of the CGST Act. The petitioner further submitted that he had already remained in custody for more than 14 months, had no criminal antecedents, and that no further recovery was required from him. It was also argued that the prosecution case was substantially based on documentary and electronic evidence, reducing the likelihood of interference with the investigation.
On the other hand, the GST authorities strongly opposed the bail plea and argued that the matter involved a large-scale tax fraud causing substantial loss to the public exchequer. The department contended that the petitioner had played a significant role in availing and passing on fraudulent tax credits through fake firms and further argued that release on bail could create a possibility of tampering with evidence.
While considering the matter, the High Court noted that the investigation had already concluded and the complaint had been filed before the trial court. The Court further observed that the allegations and counter-allegations would ultimately be tested during the trial process. It also took into consideration that the petitioner did not have any prior criminal record and had already undergone incarceration for more than one year.
The Court also observed that the maximum punishment prescribed for the alleged offences is five years and noted that completion of trial was likely to consume substantial time.
The High Court held that a case for bail had been made out and stated that the truthfulness of allegations would be examined only after evidence is led during trial proceedings. Accordingly, it directed release of the petitioner on furnishing of bail and surety bonds before the concerned court.
Case Details
Case Title: Asim Kumar Versus Union of India and another
Case No.: CRM-M-72731-2025
Date: 19.05.2026
Counsel For Petitioner: Himanshu Thakur, Advocate
Counsel For Respondent: Ridhi Bansal, Junior Standing counsel
