Fake GST Invoice and E way Bill Issuance without Actual Supply: Chhattisgarh HC grants Bail to Accused [Read Order]
While granting the bail on personal bond of Rs. 1,00,000 with solvent surety, the High Court observed that, considering the period of incarceration and the likelihood of the trial taking time, the continued detention was not required at this stage.
Ishak ShahThe Chhattisgarh High Court has granted regular bail to an accused who was arrested on allegations of creating bogus firms and issuing fake GST ( Goods and Services Tax ) invoices and e-way bills to fraudulently pass on Input Tax Credit (ITC).
The applicant, Ishak Shah director of M/s Indium Metals Alloy Pvt. Ltd., was accused by the Directorate General of GST Intelligence (DGGI), Raipur, of operating self-created dummy firms and availing fake ITC without actual movement of goods.
As per the prosecution, the accused allegedly generated fake invoices and e-way bills for aluminium ingots and related products and passed on wrongful ITC, amounting to ₹5.28 crore for himself and ₹17.98 crore for the bogus entities during FY 2023-24 to 2025-26.
The applicant was arrested for offences punishable under Section 132(1)(b), 132(1) (c), 132(1)(f) of the Chhattisgarh GST Act 2017 read with Section 16, 122(1)(ii), 122(1)(vii), 122(1)(xvii), 122(1A), 135, 137, 155 of the Chhattisgarh GST Act, 2017.
The applicant, however, submitted that he is innocent, contending that all transactions were carried out with GST-registered entities and duly reflected in GSTR-2A/2B, with no evidence of illegal profit or falsification.
He argued that the DGGI failed to verify third-party transporter records and that e-way bills were system-generated following government authentication. It was also submitted that the arrest was premature and contrary to procedure under the GST Act and Bharatiya Nagarik Suraksha Sanhita, 2023.
It was submitted that the complaint had already been filed, the investigation was ongoing, and that the accused had been in custody since 8 August 2025.
While the prosecution opposed the bail, it did not dispute that the complaint had indeed been filed.
The bench of Chief Justice Ramesh Sinha, while granting the bail on personal bond of Rs. 1,00,000 with solvent surety, observed that, considering the period of incarceration and the likelihood of the trial taking time, the continued detention was not required at this stage.
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