The Punjab and Haryana High Court has rejected a request for anticipatory bail from Jitender Saharan, who is accused of being involved in a significant fraud related to the Goods and Services Tax (GST). This fraud involves improperly claiming and distributing tax credits amounting to over 8.24 crore rupees.
The bench of Justice Manisha Batra, the allegations reveal a systematic and organised tax fraud generating significant loss to the government exchequer, and warrant custodial interrogation.
As per the prosecution, the DGGI initiated an investigation after detecting major discrepancies between GST ITC claims in GSTR-3B returns and credit actually reflected in GSTR-2B.
Four GST-registered entities, M/s Pukhraj Packaging Solutions, M/s Sun Industries, M/s Pukhraj Packaging Solutions Private Limited, and another corresponding concern were allegedly discovered to have availed and passed on ITC without any underlying supply of goods or services.
The investigation found that a sum of nearly 9.88 crore rupees was used without any actual supply of goods or services to back it up. Out of this amount, around 8.24 crore rupees is believed to have been taken fraudulently and misused. The individual involved is said to have connections as a partner or director in two companies, where they allegedly had control over important financial and operational decisions.
DGGI alleged that multiple supplier firms did not exist at their registered addresses. Even after having an eligible credit of merely Rs 26.14 lakh as per statutory returns, one such entity had passed on ITC of nearly Rs 1.77 crore. To hide the excess ITC circulation, two new GST registrations were allegedly received in the names of Ram Enterprises and Deva Enterprises, which issued invoices exhibiting taxable supplies of more than Rs 43.80 crore without any real business activity or infrastructure.
A forensic examination of a co-accused’s mobile phone generated digital evidence, including a 117-page document detailing invoices issued to multiple receivers without actual supply, thereafter corroborating the allegations of bogus invoicing and credit rotation.
The applicant said that wrong claims are spread against it, and the applicant does not have any financial decision-making powers, and could not be held vicariously obligated for the acts of other partners. Also, there is no need for custodial interrogation, and he was desirous to cooperate with the investigation.
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The court, denying such submissions, said that the allegations against the applicant were specific and grave and that he was prima facie engaged in handling various interconnected entities utilised to generate and circulate fake ITC. The court said that the investigation was at intial phase and that granting pre-arrest bail can allow the applicant to interfere with proof, influence witnesses, or delay the probe.
The court cited that economic infractions comprising of large scale evasion adversely impact public revenue and need a thorough investigation. Provided the extent of the alleged fraud and the applicant’s purported role, the court ruled that no foundation was made for anticipatory bail, and it then dismissed the petition.
According to the court, its observations were limited to determining the merits of the bail appeal and should not be interpreted as a perspective on the merits of the case.
| Case Title | Jitender Saharan vs Senior Intelligence Officer |
| Case No. | CRM-M No.61814 of 2025 |
| For Petitioner | Ms. Divyanshi Sharma, Advocate |
| For Respondent | Mr. Naman Jain, Senior Standing Counsel |
| Punjab and Haryana High Court | Read Order |
