Wrongful GST ITC Availed Without Actual Supply : Meerut Court Refuses Bail To Accused

The Meerut Court has refused the bail to the person accused of wrongful Input Tax Credit (ITC) availed without actual supply.

The bench of Additional District & Sessions Judge, Chandra Shekhar Misra has observed that the offence in the present case is affecting the public interest at large. The present case relates to economic offences. The offence like large scale fraud, money laundering and corruption, are often viewed seriously because they affect the economic fabric of the society. The Courts may deny bail in the cases especially if the accused holds a position of influence or power.

An information was recorded by the officers of DGGI, Ghaziabad Regional Unit, that Vikrant Singhal, his brother Sachin Singhal and Pradeep Kumar/Dixit are engaged in billing without material to various end-users.

A search operation was conducted at the office and residence of Vikrant Singhal and his brother Sachin Singhal and at the residence of Pradeep Kumar. During the search conducted at the residence of Sachin Singhal and Vikrant Singhai both the person along with another brother, Rajat Singhal and their other associate Gourav Jain fled away from the premises.

However, they were intercepted later on and their statements were recorded. For their active role in availment and passing on off ineligible ITC by fraudulent means, Vikrant Singhal, Sh. Sachin Singhal and Sh. Gaurav Jain, were placed under arrest. They have been enlarged on bail by the High Court, Allahabad by order.

The secret data maintained by Vikrant Singhal and WhatsApp chats recovered from his mobile phones, the following 03 persons have been identified who had arranged fake firms for passing on fake ITC and arranged purchase hills for these fake firms.

Lakshya Kumar Singh Special prosecutor for the Central Goods and Services Tax Department has vehemently opposed the prayer for bail and has specifically submitted that an intel was developed to the effect that applicant/accused has committed offence of making 66 fake is thereby passing on fake ITC of Rs. 358.77 Crore. This has been established by the data and WhatsApp chats seized from his co-accomplices.

The court noted that it is a grave economic offence. The total GST novasion has so far workout amounts to Rs. 358.77 Crores. The investigation is under progress. The applicant if released on bail will definitely try to destroy the evidence and influence the witnesses and there is his high flight risky considering his role. Considering the facts, as well as gravity of the offence, it would not be proper to enlarge him on bail at this stage. The bail application, preferred by the applicant is liable to be rejected at this stage.

Case Details

Case Title: Kamlesh Mishra Versus DGGI

Case No.: Bail Application-3084/2025

Date: 24.06.2025

Counsel For Applicant: Jitendra Singh (bana)

Counsel For Respondent: Lakshya Kumar Singh Special prosecutor