{"id":69424,"date":"2026-08-10T22:14:24","date_gmt":"2026-08-10T22:14:24","guid":{"rendered":"https:\/\/adhivaktavani.com\/?p=69424"},"modified":"2026-08-10T22:14:24","modified_gmt":"2026-08-10T22:14:24","slug":"chhattisgarh-hc-grants-regular-bail-in-17-18-cr-fake-gst-itc-case-after-dggi-investigation","status":"publish","type":"post","link":"https:\/\/adhivaktavani.com\/?p=69424","title":{"rendered":"Chhattisgarh HC Grants Regular Bail in 17.18 Cr Fake GST ITC Case After DGGI Investigation"},"content":{"rendered":"<p style=\"text-align: left;\"><strong>In a recent order, the Chhattisgarh High Court granted regular bail in an alleged fake Input Tax Credit (ITC) case involving approximately 17.18 crore.<\/strong><\/p>\n<p style=\"text-align: left;\"><strong>The Court observed that the investigation had been completed, the final complaint had already been filed, and all relevant documentary and electronic evidence was in the custody of the\u00a0Directorate General of GST Intelligence (DGGI).<\/strong><\/p>\n<p style=\"text-align: left;\"><strong>The Directorate General of GST Intelligence (DGGI) alleged that Srishti Construction fraudulently claimed and passed on ineligible Input Tax Credit (ITC) worth approximately 17.18 crore across multiple states by issuing fake tax invoices without actual underlying goods. Furthermore, DGGI inspections revealed that the firm was non-existent and untraceable at its registered business address.<\/strong><\/p>\n<p style=\"text-align: left;\"><strong>The Department alleged that Chandan Gupta (the applicant) was behind the transactions. It alleged that he obtained Rs 58.50 lakh from the firm\u2019s bank account and utilised another person\u2019s documents to open a bank account through which transactions surpassing Rs 17.96 crore were routed.<\/strong><\/p>\n<p style=\"text-align: left;\"><strong>The applicant\u2019s counsel argued that he was wrongfully implicated and that the elements required to establish the offence u\/s 132(1)(c) of the CGST Act were not met.<\/strong><\/p>\n<p style=\"text-align: left;\"><strong>They contended that he neither owned nor controlled the firms in question and had no direct involvement in generating fake invoices or in obtaining\u00a0input tax credits (ITC).<\/strong><\/p>\n<p style=\"text-align: left;\"><strong>The applicant further contended that the case was primarily based on statements, banking transactions, and documents that had already been seized by the Department.<\/strong><\/p>\n<p style=\"text-align: left;\"><strong>It was also submitted that the investigation had been completed, no further recovery remained pending, and the applicant had been in judicial custody since 22 January 2026.<\/strong><\/p>\n<p style=\"text-align: left;\"><strong>Strongly opposing the bail application, the Revenue Counsel argued that the fraudulent activity constituted a grave economic offence causing significant loss to the public exchequer.<\/strong><\/p>\n<p style=\"text-align: left;\"><strong>Counsel further cautioned that releasing the applicant could lead to witness tampering, destruction of electronic evidence, or obstruction of the ongoing investigation into a larger conspiracy.<\/strong><\/p>\n<p style=\"text-align: left;\"><strong>Important:\u00a0Fraudsters\u2019 Mind vs Govt Intelligence for Fake GST Invoices<\/strong><\/p>\n<p style=\"text-align: left;\"><strong>The Single Bench, comprising Chief Justice Ramesh Sinha, observed that although the allegations were serious in nature, the investigation had already been completed and the final complaint had been filed.<\/strong><\/p>\n<p style=\"text-align: left;\"><strong>The Court further noted that the prosecution\u2019s case was primarily based on documentary records and electronic evidence already in the Department\u2019s possession.<\/strong><\/p>\n<p style=\"text-align: left;\"><strong>The Court considered the period of custody and the time needed to finish the trial. It did not express any view on the merits; it said that further custodial detention was not desired at that phase.<\/strong><\/p>\n<p style=\"text-align: left;\">\n<p style=\"text-align: left;\">\n<strong>The order was given for the release of the applicant on providing a personal bond of Rs 1 lakh with one solvent surety to the satisfaction of the concerned court. The bail order will remain in force till disposal of the matter.<\/strong><\/p>\n<p style=\"text-align: left;\">\n<p style=\"text-align: left;\">\n<strong>Case Title Chandan Gupta vs. Directorate General of Goods And Service Tax Intelligence<\/strong><br \/>\n<strong>Case No. MCRC No. 5936 of 2026<\/strong><br \/>\n<strong>For Applicant Shri Manoj Paranjpe and Shri Arpan Verma<\/strong><br \/>\n<strong>For Respondent Shri Maneesh Sharma<\/strong><br \/>\n<strong>Chhattisgarh High Court <\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>In a recent order, the Chhattisgarh High Court granted regular bail in an alleged fake Input Tax Credit<\/p>\n","protected":false},"author":1,"featured_media":4023,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"","fifu_image_alt":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[29],"tags":[],"class_list":["post-69424","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-high-court"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.1 - 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