GST Commissioner’s Forged Signature used to Facilitate Credit Withdrawal to Bank: Punjab & Haryana HC Grants Conditional Bail [Read Order]

In a recent ruling, the Punjab & Haryana High Court at Chandigarh granted conditional bail to an exporter, who was accused of orchestrating a conspiracy involving the forged signature of the GST ( Goods and Services Tax ) Commissioner, to fraudulently withdraw funds from a bank account.

A complaint was filed by a CGST Assistant Commissioner, alleging that during proceedings against M/s Saneha Export for GST evasion of over ₹4.51 crore, it was discovered that the firm was non-existent and had availed fake input tax credit (ITC). Its SBI bank account had been frozen under Section 83 of the CGSTAct.

However, investigators found that a forged letter dated 22.01.2024, purportedly signed by the Commissioner, was sent to the bank directing it to unfreeze the account, enabling withdrawal of ₹3.29 crore.

The probe revealed that accused, Rohit allegedly conspired with co-accused Rakesh Garg to dispatch the forged letter, and subsequently, he withdrew ₹5 lakh himself, with a total of ₹1.10 crore siphoned out, of which ₹35 lakh fell to his share.

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The State opposed bail, stating the gravity of the fraud, the scale of loss to the exchequer, and the petitioner’s alleged central role in procuring and using the forged document. The prosecution said that sufficient prima facie evidence linked Rohit to the offense, necessitating custodial interrogation.

Justice Anoop Chitkara, however, noted that the petitioner had been in custody for nearly six months and reiterated the principle that pre-trial incarceration should not become a substitute for punishment, especially given the presumption of innocence until proven guilty.

The bench referred to Supreme Court precedents, the Court stressed that prolonged detention without trial could infringe Article 21 rights.

Balancing these considerations, the Court granted conditional bail subject to stringent terms. Rohit was directed to furnish personal and surety bonds (or a fixed deposit of ₹10,000) and to provide identification details including Aadhaar and contact information.

The order specifically mandated that the petitioner must not tamper with evidence, influence witnesses, or commit any further offense. Importantly, the Court clarified that if Rohit repeats the offense or commits any serious non-bailable crime, the State may apply for immediate cancellation of bail.

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