Acting on a case initiated by the Directorate General of GST Intelligence (DGGI), Meerut, a Special Chief Judicial Magistrate Court has granted a 14-day judicial remand to an Hardik Jain, a person accused in a major Goods and Services Tax (GST) fraud involving alleged wrongful availment of Input Tax Credit (ITC) amounting to approximately Rs. 13.55 crore.
The case, registered under Sections 132(1)(c) and 132(1)(i) of the CGST Act, 2017, pertains to fraudulent transactions carried out through the firm M/s Ascon Enterprises. The accused, identified as the proprietor of the firm and a resident of Brahmpuri, Meerut, was arrested by GST department on March 18, 2026, at around 9:08 AM.
According to the prosecution, the accused orchestrated a large-scale tax evasion scheme by issuing fake invoices without actual supply of goods. Investigations revealed that nearly 18 fictitious firms were created and used to generate fraudulent invoices. These invoices were then utilized to claim and pass on ineligible ITC.
Authorities stated that the accused availed ITC of ₹13.55 crore through these non-existent transactions, causing significant loss to the government exchequer. During inspection and verification, officials found that the listed firms were either non-operational or did not exist at their registered locations.
The department relied on multiple documents, including seizure reports, statements, and other material evidence, to establish the alleged fraud. The accused was taken into custody following due legal procedure, and the arrest was documented in compliance with established legal guidelines.
SPP Lakshay Kumar Singh submitted that the nature of the offence is serious and involves economic fraud of a substantial magnitude. It argued that custodial interrogation and further investigation were necessary to uncover the full extent of the network and identify other beneficiaries.
The defense counsel opposed the remand, arguing that there was no concrete evidence directly linking the accused to the alleged ₹13.55 crore ITC fraud. It was contended that the arrest was unwarranted and that the accused should be released.
However, after hearing both sides and examining the available records, the court found sufficient grounds to proceed with the remand.
The court observed that the allegations point to a serious economic offence involving systematic tax evasion through fake invoicing. It noted that the scale of the fraud and the modus operandi adopted warranted further investigation.
Considering the gravity of the offence, the court allowed the remand application and ordered that the accused be sent to judicial custody for 14 days. The accused is to remain in custody until March 31, 2026, and will be produced before the court thereafter.
