Amit Bhasin vs Central Goods And Service Tax Commissionerate

CRM-M-55597-2026(O&M) - 1 -
IN THE HIGH COURT OF PUNJAB AND HARYANA
AT CHANDIGARH
299
CRM-M-55597-2026 (O&M)
Decided on : 12.11.2026
Amit Bhasin . . . Petitioner(s)
Versus
Central Goods and Service Tax Commissionerate,
Gurugram . . . Respondent(s)
CORAM: HON'BLE MR. JUSTICE SANJAY VASHISTH
PRESENT: Mr. Randeep S. Rai, Sr. Advocate and
Mr. Rahul Sharma, Sr. Advocate with
Mr. Arjun Dewan, Advocate,
Mr. Suhaan Mukarji, Advocate,
Ms. Arshiya Ghose, Advocate and
Mr. Kritik Sharma, Advocate, for the petitioner(s).
Ms. Neha Awasthi, Sr. Standing Counsel
for the respondent(s).

SANJAY VASHISTH, J. (Oral)
1. The instant petition has been filed under Section 483 of BNSS,
2023 (earlier Section 439 Cr.P.C.) r/w Section 69 of the Central Goods and
Services Tax Act, 2017, seeking grant of regular bail to the petitioner in
connection with Arrest Memo dated 25.07.2026 in Case No.
GEXCOM/AE/INV/GST/13090/2025-AE-O/O COMMR-CGST
GURUGRAM (CBIC-DIN-20260752ZO0000CEDDC7) registered under
Sections 132(1)(B), 132(1)(C), 132(1)(F) and 132(1)(I) r/w Section 132(5)
of the Central Goods and Services Tax Act, 2017, issued by office of the
Principal Commissioner, CGST, Gurugram (Annexure P-1).
2. Case of the prosecution, as culled out from the impugned order
dated 11.09.2026, reads as under:-
RASHMI
2026.11.13 20:17
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CRM-M-55597-2026(O&M) - 2 -
“3(i) The brief facts of the prosecution case is that M/s
Targetone Innovations Private Limited ("TIPL", GSTIN
06AAFCT7627N1ZS) and M/s Parcit Autocrazy Private Limited
("PAPL", GSTIN06AAKCP5431H1ZE, with further
registrations in other States) and a network of 28 shells/dummy
firms are found involved in fraudulent availment utilisation and
passing on of input Tax Credit (ITC) without corresponding
receipt or supply of goods/services. The matter came to notice
pursuant to an alert No.139/EXP/2023-2024 flagging a risky
export consignment traced to a supplier chain involving PAPL
and was further substantiated by statements of directors,
employees dummy proprietors/ whatsapp/email evidence and an
independent forensic conducted by the Ernst & Young LLP.
3(ii) The present applicant-accused are cofounder and
director of TIPL having brand Go Mechanic since 2016 . Later
joined by Nitin Rana and Rishabh Karwa in the year 2021.
3(iii) The Investigation has revealed a network of 28
firms created and operated by co-accused Sahil Chandna. In his
voluntarily tendered statements dated 17.02.2026 and
24.07.2026 tendered under Section 70 of the CGST Act, he
stated that the creation of the said fake entities, the issuance of
invoices, the management of the bank transactions, the on
boarding of the said entities onto bank and NBFC profiles and
the filing of their returns were all done at the behest of and on
the directions of the Directors of TIPL, namely the Kushal
Shailesh Karwa (applicantaccused), Amit Bhasin,Rishabh
Karwa and Nitin Rana, against a commission of 2-3% of the
invoice value.
3(iv) It is alleged that PAPL was found a conduit entity
operated through nominal Directors. Its two registered
Directors, Sh. Abhishek Rana and Sh. Ramesh Kumar, have in
their respective voluntarily tendered statements dated
17.04.2026 and 28.04.2026 confirmed that they were nominal
RASHMI
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CRM-M-55597-2026(O&M) - 3 -
Directors introduced by Sh. Nitin Rana. They attended no
meeting, performed no role, derived no benefit, and never held
or operated PAPL's bank account, and that PAPL was managed
and controlled entirely by the Directors of TIPL. Their
consecutive Director Identification Numbers i.e. 08450774 and
08450773, are consistent with a single simultaneous
appointment.”
3. Apart from aforesaid statements, statements of other co-
accused, namely, Nitin Rana, Rishabh Karwa and Vishamber Sharma, were
also recorded during investigation, who, as per learned counsel for
respondent-Department, are also accused in the present case. Besides
statements of aforesaid persons, respondent-Department has also relied upon
certain documentary evidence in support of its allegations.
4. Regarding the illegal arrest, following was recorded on
15.10.2026:-
“1. Principal argument advanced by learned Senior
Counsel for the petitioner is that reasons necessitating the
petitioner’s arrest have not been recorded by the competent
authority, i.e. Commissioner of GST, rather the same have been
recorded by Mr. Pushpendra Singh Shekhawat,
Inspector/Investigating Officer. In this regard, learned Senior
Counsel has drawn the attention of this Court to page No. 33 of
the paperbook, wherein concluding portion of the reasons for
arrest has been recorded.
2. While referring to Section 69 of the Central Goods
and Services Tax Act, 2017 (CGST Act), learned Senior
Counsel has also placed reliance upon paragraph Nos.58, 59
and 60 of the judgment passed by Hon’ble Supreme Court,
titled as ‘Radhika Agarwal vs. Union of India’ (2025) 6
RASHMI Supreme Court Cases 545.
2026.11.13 20:17
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CRM-M-55597-2026(O&M) - 4 -
3. Learned Senior Counsel further submits that,
subsequent to the recording of reasons by the
Inspector/Investigating Officer, a complaint has also been filed
before the competent Court on 22.09.2026. It is, therefore,
contended that petitioner’s further detention inside jail, is no
longer warranted.
4. List again on 11.11.2026, for further
consideration.”
5. Another argument advanced by learned Senior counsel is that
co-accused of petitioner, namely, Sahil Chandna, has already been granted
concession of bail by a Coordinate Bench of this Court, after declaring his
arrest illegal.
Besides, learned Senior counsel has also produced a copy of
Instruction No.02/2026-GST dated 30.10.2026, issued by Government of
India, Ministry of Finance, Department of Revenue, Central Board of
Indirect Taxes and Customs, GST Policy Wing. While referring to Clause
3.1 thereof, learned Senior counsel submits that following directions have
been issued by the Department:-
Arrest Provisions:
“3.1 The GST Council has recommended
withdrawal of arrest powers under GST by omission of section
69 of CGST Act, 2017. All CGST field formations are
accordingly directed that no further arrests may be carried out
under GST.”
On the strength of aforesaid instruction and other circumstances
noticed here-above, learned Senior counsel submits that continued detention
of petitioner is not warranted and, accordingly, prays for grant of concession
of regular bail.
RASHMI
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CRM-M-55597-2026(O&M) - 5 -
6. On the other hand, learned Senior Standing counsel for
respondent-Department has filed a detailed reply dated 30.09.2026 in Court
today, which is taken on record. Office to tag same at its appropriate place.
A copy thereof has been handed over to learned counsel for petitioner.
7. Learned Senior Standing counsel for respondent-Department
has opposed the prayer for bail. However, she couldn’t advance any
substantial argument to demonstrate why further detention of petitioner
inside jail is necessary, particularly when investigation qua petitioner
already stands completed and thereupon, even complaint has also been filed
before competent Court.
8. I have heard learned counsel for the parties and perused relevant
material available on record.
9. It is not disputed that investigation qua petitioner stands
completed and complaint has already been filed before competent Court on
22.09.2026. Thus, further detention of petitioner is not required for the
purpose of investigation. It is also relevant that maximum punishment
prescribed for the offences alleged against petitioner is up to five years.
Further, co-accused Sahil Chandna has already been granted concession of
bail by a Coordinate Bench of this Court after his arrest was held to be
illegal. Although said order is not, by itself, determinative of petitioner's
entitlement to bail, it is a relevant circumstance which deserves
consideration.
Another significant development is issuance of Instruction
No.02/2026-GST dated 30.10.2026 by Government of India, whereby all
CGST field formations have been directed that no further arrests may be
RASHMI
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CRM-M-55597-2026(O&M) - 6 -
carried out under GST, pursuant to recommendation of GST Council for
withdrawal of arrest powers by omission of Section 69 of CGST Act, 2017.
Though said instruction does not, by itself, determine legality of petitioner's
earlier arrest, it reflects a subsequent policy decision of respondent-
Department against effecting further arrests under GST. This development,
when considered along with completion of investigation, filing of complaint,
absence of any demonstrated requirement of further custodial interrogation
and bail granted to co-accused, weighs in favour of petitioner.
10. In totality of aforesaid circumstances, particularly when
investigation stands completed and further incarceration of petitioner is not
shown to be necessary, this Court is of the considered view that continued
detention of petitioner inside jail would not serve any useful purpose.
Consequently , prayer made in the present petition is allowed .
Petitioner is ordered to be released on bail, subject to her furnishing
bail/surety bonds to the satisfaction of the learned trial Court/ Chief Judicial
Magistrate/ Illaqa Magistrate/ Duty Magistrate concerned, if not required in
any other case.
11. Needless to observe that the petitioner shall not extend any
threat and shall not influence any prosecution witness in any manner directly
or indirectly.
12. Any of the discussion done and recorded here above, shall not
be construed as an expression of opinion on the facts of the case. Therefore,
trial Court is expected to decide the case by taking an independent view, on
the basis of evidence available on record, as expeditiously as possible, in
accordance with law.
RASHMI
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CRM-M-55597-2026(O&M) - 7 -
13. Petition stands disposed of .
Misc. application(s), if any, also stand disposed of.
(SANJAY VASHISTH)
JUDGE
November 12, 2026
J.Ram
Whether speaking/reasoned: Yes/No
Whether Reportable: Yes/No
RASHMI
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