CRM-M No.20055 of 2025 (O&M) -1- 102 (1st case) IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH CRM-M No.20055 of 2025 (O&M) Date of Decision: 28.04.2025 Ripan Jain ......... Petitioner Versus Additional Directorate General of GST Intelligence, Zonal Unit, Ludhiana and another ......... Respondents CORAM: HON'BLE MR. JUSTICE MAHABIR SINGH SINDHU Present:- Mr. Aman Bansal, Advocate for the applicant/petitioner. Mr. Sourabh Goel, Advocate, Senior Standing Counsel with Ms. Geetika Sharma, Advocate and Mr. Kush Goyal, Advocate for the respondents. **** MAHABIR SINGH SINDHU, J. CRM-15777-2025 Present application has been filed under Section 528 of Bharatiya Nagarik Suraksha Sanhita, 2023 (for short ‘BNSS’) for placing on record affidavit of the petitioner. The same is allowed as prayed for subject to all just exceptions. Registry to tag the affidavit at appropriate place. GAGANDEEP 2025.05.08 11:45 I attest to the accuracy and authenticity of this document High Court Chandigarh CRM-M No.20055 of 2025 (O&M) -2- MAIN CASE Present petition under Section 482 of the BNSS has been filed for grant of pre-arrest bail to the petitioner in complaint No.DIN No.202502DNN5000000BP68 under Sections 132(1)(b) and 132(1)(c) of the Central Goods and Service Tax Act, 2017 (for short ‘GST Act’) read with corresponding provisions of the Punjab Goods and Service Tax Act, 2017, registered by Additional Directorate General of GST Intelligence, 51D, Zonal Unit, Sarabha Nagar, Ludhiana. (2) Allegations are that petitioner created three Firms, namely, M/s Disha Enterprises, Sarthak Enterprises and Kashbhi Accessories Point and he used to do trading on the basis of false invoices without actually supplying the underlying goods. (3) Contends that petitioner has been falsely implicated in the present case. Further contends that petitioner is neither proprietor; nor partner of any Firm(s) and he has no role in the commission of alleged crime. Also contends that no complaint has been supplied to the petitioner; nor to any other co-accused. Lastly contends that petitioner is ready to join the proceedings, but he be protected. (4) Although, there is no formal notice of motion in the case, however, Mr. Sourabh Goel, learned Senior Standing Counsel for the respondents has appeared and produced statements dated 27.01.2025 & 28.01.2025 of Saurabh Goyal, Director-cum-Authorized Signatory of M/s Jay Kay Hosiery Mills Private Limited, Ludhiana before Additional Assistant GAGANDEEP 2025.05.08 11:45 I attest to the accuracy and authenticity of this document High Court Chandigarh CRM-M No.20055 of 2025 (O&M) -3- Director, DGGI, Ludhiana Zonal Unit under Section 70 of the Central Goods and Services Tax Act, 2017 (for short ‘CGST Act’), which are taken on record as Mark ‘X’ & Mark ‘Y’, respectively. (5) Learned Senior Standing Counsel for the respondents submits that during investigation, it surfaced that several persons, including Saurabh Goyal (Director, M/s Jay Kay Hosiery Mills Private Limited), to whom various Invoices & Bills were supplied by the petitioner, has stated that it is the petitioner, who had provided them with the account number(s) and GST number(s) of the Firms, namely, M/s Disha Enterprises, Sarthak Enterprises and Kashbhi Accessories Point and on the basis of these Invoices, money was transferred in his favour. (5.1) Further submits that petitioner manages the affairs of aforementioned Firm(s) and despite four repeated notices, he is not coming forward; rather deliberately evading the process of law. Thus, petitioner does not deserve the concession of pre-arrest bail. (6) Heard both sides and perused the paper-book. (7) Perusal of aforesaid statements (Mark ‘X’ & Y’) reveals that petitioner used to do trading on the Invoices without actually supplying the goods. Also discernible that on the basis of these Invoices, he availed income tax rebate of Rs.84.19 Crore. For reference, question Nos.7, 8, 10, 13, 14, 16, 17, 18, 19 & 22, put to said Saurabh Goyal with answers thereof (Mark X) (supra), being relevant, are recapitulated as under:- Question : 7 Who were the dealing persons of the above mentioned firms? GAGANDEEP 2025.05.08 11:45 I attest to the accuracy and authenticity of this document High Court Chandigarh CRM-M No.20055 of 2025 (O&M) -4- Answer: I used to deal with a person named Mr. Ripan Kumar Jain and he used to personally provide me the GST invoices of the above mentioned GST firms. Mr. Ripan Kumar Jain manages three firms namely M/s Sarthak Enterprises (Prop. Sarthak Jain S/o Sh. Ripan Kumar Jain) GST-03APYPJ2569Q1ZY, M/s Disha Enterprises (Partnership Firm Sarthak Jain and Disha Jain W/o Sh. Sarthak Jain) GST- 03AAQFD2947K1Z6 and M/s Kashbhi Accessories Point GST 03CFDPJ7189F1ZF. All the firms are operated from the registered address of M/s Disha Enterprises i.e. B-24/2724/1, Diamond Complex. First Floor, Opp. First Lane Hosiery, Ludhiana. His mobile numbers are 6280676781, 6239319590, and 8591855555. I am not sure about the exact residential address of Mr. Ripan Kumar Jain but he lives in some rented accommodation in Haibowal Kalan,Ludhiana. I am providing you the copy of the images of Mr. Ripan Kumar Jain and Mr. Sarthak Jain and I have put my dated signature on the same. Question: 8 What did you do with the fake ITC availed on the basis of fake invoices issued by the above mentioned firms and provided by Mr. Ripan Kumar Jain. Answer: I state that the I used to do the trading of fake invoices without actual supply of underlying goods. I used to issue the parallel invoices in respect of such fake invoices to the following firms :- Party Name GSTIN Oasis Knitwears 03AADFO8465A1ZK Kaur Sain Spinning Mills 03AADFK0688B1ZX Nagpal Exports 03AACFN3695C1ZK Thukral Fabrics 03AADFT3137C1ZS S A oswal 03AEKFS8922B1Z5 Woolworth Knitwears 03AALPN5941LIZE Royal Impex Private Limited 03AAFCR3220H2ZV GAGANDEEP 2025.05.08 11:45 I attest to the accuracy and authenticity of this document High Court Chandigarh CRM-M No.20055 of 2025 (O&M) -5- Harish International 03AAEFH9378J1Z1 Star Spintex Pvt Ltd 03AAOCS1082K1Z7 Emmy Knitwears 03AEKPG1583J1ZK Starlight Hosiery Mills 03AFYPK7882B2Z2 Unimax Apparels 03AFSPJ5524P1ZY Question 10: Did you use to deal directly with the buyers of such fake invoices? Answer: It is stated that I did not deal directly with the buyers of the fake invoices. It was Ripan Kumar Jain, who used to collect the fake invoices from me and provide the same to the buyers. Question 13: On checking the above mentioned suppliers on GSTIN, it has been observed that the following suppliers are cancelled from the date prior to the date on which you have made purchases from them for the reasons as detailed in the table below. Please comment on the same. Sr No. TRADE NAME GSTIN Sum of Taxable Value Sum of Total tax 1 A D ENTERPRISES 07BIGPT7065M2ZH 2,50,52,260 30,06,271 2 MS TREDING CO 070FQPS3299L220 2,31,85,950 27,82,314 3 RADHEY KRISHNA 03LCPPK8123G1ZD 1,69,27,150 11,12,806 4 TEYHAR KNITWEARS 03AAHCT7882R1ZF 1,10,50,658 7,02,049 5 Vivek Enterprises 03EXYPP6573G1ZP 82,56,482 6,93,299 6 PK ENTERPRISES 03JFFPK8904A1ZQ 65,14,265 6,06,000 7 Balaji Trading CO 03CGVPG2734G1ZF 65,08,225 6,05,383 8 KV TRADER 03GXWPK5190L1ZO 1,19,34,000 5,96,700 9 PANJAB ENTERPRISES 03NNBP54532L1ZM 1,13,63,560 5,68,178 10 C.K TRADERS 03GHTPS2371LIZN 45,29,290 5,73,215 GAGANDEEP 2025.05.08 11:45 I attest to the accuracy and authenticity of this document High Court Chandigarh CRM-M No.20055 of 2025 (O&M) -6- 11 SAI ENTERPRISES 03DUWPA1415G1ZY 1,05,52,710 5,27,636 12 VIKASH ENTERPRISES 03HRFPK4599K1Z7 1,01,61,510 5,08,076 13 C.S. TRADERS 03NCSPS6105M1ZT 78,14,000 3,90,700 14 VOICETELE SOLUTIONS 03AAICV2738D1ZK 69,58,550 3,47,928 15 JG ENTERPRISES 03BPUPK9661K1Z5 65,99,485 3,29,974 16 KASHMIRA SINGH & CO 03CJKPS078G1ZZ 31,17,400 1,55,870 17 SHIV SHAKTI ENTERPRISES ОЗНECPS9422F1ZG 27,94,176 1,39,709 17,33,19,671 1,36,46,108 Answer: It is stated that I have seen the above table and have completely understood the same. I state that we have taken ITC of Rs. 1,36,46,108/- on the basis of the invoices raised by these suppliers and provided to me by Mr. Ripan Kumar Jain without the actual supply of the underlying goods and further issued the parallel invoices to the firms as detailed in answer to Question No. 8. Question 14: In addition to the above 17, you have availed ineligible ITC from on the basis of the invoices issued by the following units without supply of the underlying goods. Please comment on the same. Sr. No. TRADE NAME GSTIN Sum of Taxable Value Sum of Total tax 1 MEERAJ KNITWEAR 03AALCM0973A1ZV 1,32,97,083 9,38,842 2 AASTHA INTERNATIONAL 03AIJPJ6957E2Z7 84,62,290 4,58,193 GAGANDEEP 2025.05.08 11:45 I attest to the accuracy and authenticity of this document High Court Chandigarh CRM-M No.20055 of 2025 (O&M) -7- 3 SARTHAK ENTERPRISES 03APYPJ2569Q1ZY 3,07,35,844 15,36,792 4 JAI DURGA TRADERS 03EEOPR4688B1Z6 1,46,30,385 9,91,142 5 B.S CLOTH AND YARN TRADERS 03HGCPS9725K1ZV 44,93,181 5,39,182 6 R. K TRADERS 03GKLPR0149Q1ZJ 1,62,75,925 11,14,779 7 J S ENTERPRISES 03EMDPR1169C1ZC 1,06,01,025 7,90,766 8 DISHA ENTERPRISES 03AAQFD2947K1Z6 1,74,26,031 8,71,302 9 D S ENTERPRISES 03OVYPK7306E1Z3 54,33,786 6,52,054 10 A M ENTERPRISES 03DOEPG5859C2Z5 8,89,960 1,06,795 11 R.D YARN TRADERS 03BJPPR6396R1ZZ 2047570 102378.5 12 SHUBH ARAMBH INDUSTRIES 03JTOPS5303G1ZH 68,55,215 3,42,761 13 SHUBH ARAMBH INDUSTRIES 03JTOPS5303G1ZH To be determined To be determined 14 SKY HIGH INTERNATIONAL 07AGPPG1224P1Z5 15 SUHAAS YARN NA Total 13,11,48,295 84,44,987 GAGANDEEP 2025.05.08 11:45 I attest to the accuracy and authenticity of this document High Court Chandigarh CRM-M No.20055 of 2025 (O&M) -8- Answer: It is stated that I have seen the above table and have completely understood the same. I state that we have taken ITC of Rs. 84,44,987/-on the basis of the invoices raised by these suppliers and provided to me by Mr. Ripan Kumar Jain without the actual supply of the underlying goods and further issued the parallel invoices to the firms as detailed in answer to Question No. 8. Question 16. Do you purchase fake invoices from the 32 (17+15) suppliers mentioned in the answer to Question 13 and 14 above in M/s Jay Kay Hosiery Mills too? Answer: It is stated that I deal in purchase of fake invoices without actual supply of underlying goods from the below mentioned 23 suppliers:- Sr. No. GSTIN Legal Name Sum of Taxable Value Total ITC availed 1 03AAHCT7882R1ZF TEYHAR KNITWEARS PRIVATE LIMITED 5249349 410802 2 03AAICV2738D1ZK VOICETELE SOLUTIONS PRIVATE LIMITED 6295020 314751 3 03AALCM0973A1ZV MEERAJ KNITWEAR PVT. LTD. 5264562 362362 4 03AAQFD2947K1Z6 DISHA ENTERPRISES 39141377 2048251 5 03AIJPJ6957E2Z7 AASTHA INTERNATIONAL 8098982 404949 6 03APYPJ2569Q1ZY SARTHAK ENTERPRISES 41944194 2112619 7 03BJPPR6396R1ZZ R.D YARN TRADERS 7220841 361042 8 03BPUPK9661K1Z5 JG ENTERPRISES 14406005 844001 9 03CJKPS0786G1ZZ KASHMIRA SINGH CO 1894200 94710 GAGANDEEP 2025.05.08 11:45 I attest to the accuracy and authenticity of this document High Court Chandigarh CRM-M No.20055 of 2025 (O&M) -9- 10 03DOEPG5859C2Z5 AM ENTERPRISES 865800 103896 11 03DUWPA1415G1ZY SAI ENTERPRISES 6861160 343058 12 03EEOPR4688B1Z6 JAI DURGA TRADERS 6648900 761328 13 03EMDPR1169C1ZC J S ENTERPRISES 6605250 756930 14 03GKLPR0149Q1ZJ R. K TRADERS 6690900 764688 15 03GXWPKS190L1ZO KV TRADER 2783250 139163 16 03HECPS9422F1ZG SHIV SHAKTI ENTERPRISES 2794624 139731 17 03HGCP59725K1ZV B.S CLOTH AND YARN TRADERS 2582455 309895 18 03HRFPK4599K1Z7 VIKASH ENTERPRISES 10001283 500064 19 03LCPPK8123G1ZD RADHEY KRISHNA ENTERPRISES 5610600 673272 20 03NCSPS6105M1ZT CS. TRADERS 7859525 392976 21 03NNBPS4532L1ZM PANJAB ENTERPRISES 5420790 271040 22 07BIGPT7065M2ZH AD ENTERPRISES 10382795 519140 23 070FQPS3299L2Z0 M S TREDING CO 16866800 1460726 Total 22,14,88,661 1,40,89,393 It is stated that the same were sold to the buyers mentioned in the answer to Question 8 through Mr. Ripan Kumar Jain from M/s Jay Kay Hosiery Mills too. All the transactions are dealt in the similar way as stated in the foregoing answer in respect of M/s Jay Kay Hosiery Mills Pvt. Ltd. GAGANDEEP 2025.05.08 11:45 I attest to the accuracy and authenticity of this document High Court Chandigarh CRM-M No.20055 of 2025 (O&M) -10- Question 17: It has been observed that you have claimed ITC on the basis of Invoices raised by certain firms registered in Delhi. However, ewaybill analysis depicts that there is no movement of goods as no toll is crossed or the vehicle has movement in some other state. Screenshots of some sample ewaybills are attached under. From, this it is evident that these two suppliers have only raised the invoices without actual supply of the underlying goods. What are your comments on the same. Answer: I have perused the above table and the screenshots and have completely understood it. As stated earlier, I was just purchasing the fake invoices from these firms like other mentioned firms without actual supply of underlying goods through Mr. Ripan Kumar Jain. Since, there was no actual supply of the underlying goods, there was no toll movement of the vehicles mentioned in the Ewaybills, Question 18: Who use to generate the e-waybills of all such fake invoices? Answer: It is stated that in the case of both M/s Jay Kay Hosiery Mills Pvt. Ltd. And M/s Jay Kay Hosiery Mills, the e-waybills for the purchase side was generated by the supplier firms and provided to me by Mr. Ripan Kumar Jain and for the sale side, the e-way bill was generated by us and we provided the same to Mr. Ripan Kumar Jain alongwith the invoices. Question 19: How and when you met Mr. Ripan Kumar Jain and whether you were engaged in any cash transactions with him? Answer: Mr. Ripan Jain has been one of the accessories supplier to M/s Jay Kay Hosiery Mills since long. I used to meet him frequently. Thereafter, when I was facing losses I never dealt with him in Cash transaction. All the transactions have been carried out through bank accounts. Question 22: You are being shown the following invoices:- GAGANDEEP 2025.05.08 11:45 I attest to the accuracy and authenticity of this document High Court Chandigarh CRM-M No.20055 of 2025 (O&M) -11- Sr. No. Name of the Supplier Name of the Buyer Invoice No. & Date Description of Goods Qty. (kg) Unit Price Total Value Tax Total Amount 1 Teyhar Knitwears Private Limited Jay Kay Hosiery Mills TKPL/215 dated 09- 02-2024 Spun Polyester 3490 200 698000 83760 781760 2 Teyhar Knitwears Private Limited Jay Kay Hosiery Mills TKPL/220 dated 10- 02-2024 Spun Polyester 3482 205 713810 85657 799467 3 Jay Kay Hosiery Mills Vihan International GST-2142 dated 10- 02-2024 Spun Polyester 3490 215 750350 90042 840392 4 Jay Kay Hosiery Mills Vihan International GST-2146 dated 10- 02-2024 Spun Polyester 3482 208 724256 86910 811166 In this case, although the quantity of goods as per fake purchase invoices and fake sale invoices match but the unit price and total amount of fake sale purchases are higher than corresponding/parallel fake purchase invoices. However, in answer to the foregoing questions you have stated that you have not availed any commission/profit on the trading of fake invoices. Please comment. Answer: I have seen the above mentioned invoices and have put my dated signatures on the same as a token of having seen and understood them. It is stated that the unit price of the sale invoices were decided by Mr. Ripan Kumar Jain. However, the amount received from the buyer of the fake invoices and sent to the seller of the fake invoices was not on invoice to invoice basis. The same was received and transferred in round figures as told by Mr. Ripan Kumar Jain. I have supplied you the signed copies of ledger account of M/s Vihaan International. I further state that I am providing you signed copies (4 pages) listing the details of the missing sale invoices (2 pages) and purchase invoices (2 pages) GAGANDEEP 2025.05.08 11:45 I attest to the accuracy and authenticity of this document High Court Chandigarh CRM-M No.20055 of 2025 (O&M) -12- of M/s Jay Kay Hosiery Mills Private Limited. I undertake to provide the same by tomorrow positively.” (8) From perusal of the above extract, prima facie, complicity of the petitioner is well apparent; therefore, his custodial investigation would be very much necessary to unearth the truth. (9) Consequently, there is no option except to dismiss the petition. (10) Ordered accordingly. (11) The above observations be not construed as an expression of opinion on merits of the case. Pending application(s), if any, shall also stand disposed off. 28th April, 2025 ( MAHABIR SINGH SINDHU ) Gagan JUDGE Whether speaking/reasoned Yes/No Whether Reportable Yes/No GAGANDEEP 2025.05.08 11:45 I attest to the accuracy and authenticity of this document High Court Chandigarh