The Orissa High Court has granted the bail to Ankit Singh, a person accused of wrongfully availing Input Tax Credit (ITC) worth Rs.23.06 crores from non-existent, registration-cancelled, or suspected business entities.
The bench of Chief Justice Ramesh Sinha has observed that the complaint has already been filed against the applicant and further no statutory notice or assessment has been conducted against the applicant under the SGST Act, 2017, the quantum of tax involved remains unassessed and appealable, and the applicant has fully cooperated with the investigation and further the complaint has been filed, it appears that no purpose would be served by his further detention. The primary object of the Act is economic recovery rather than punitive incarceration.
The applicant is the Director of M/s Mahavir Moulds India Private Limited and is allegedly involved in the management, operations, and financial transactions of the following seven companies, namely—M/s Jai Bajrang Loha Private Limited, M/s Shree Pashupati Nath Loha & Steel Traders Private Limited, M/s Ambitious Procon Private Limited, M/s Karma Hireup Private Limited, M/s Morvi Nandan Healthcare Private Limited, M/s Nairson Multiventures Private Limited, and M/s NPR Commercials Private Limited.
It was alleged that these entities have claimed and availed ineligible or fake Input Tax Credit (ITC) amounting to approximately Rs.23.06 crores from non-existent, registration-cancelled, or suspected business entities.
The complaint, as filed by the Deputy Commissioner of State Tax (BIU), New Raipur Division, discloses that the alleged acts of the applicant constitute offences punishable under Section 132(1)(b) and (c) of the Chhattisgarh Goods and Services Tax Act, 2017, which are further punishable under Section 132(1)(i) of the GST Act.
The court while noting that applicant is languishing in jail since 20.08.2025, his custodial detention is not warranted hence, without commenting anything on merits of the case, granted regular bail to the applicant subject to furnishing a personal bond in the sum of Rs.1,00,000/- with one solvent surety to the satisfaction of the concerned Court.
Case Details
Case Title: Ankit Singh Versus State Of Chhattisgarh
Case No.: MCRC No. 8411 of 2025
Date: 17.10.2025
Counsel For Petitioner: Manoj Paranjpe, Sr. Adv
Counsel For Respondent: S.S. Baghel, Dy. G.A.
