The Hon’ble Karnataka High Court in Abdul Majid & Ors. v. The Assistant Commissioner of Commercial Taxes [Criminal Petition No. 9260 of 2026 c/w Criminal Petition No. 9244 of 2026 and Criminal Petition No. 9306 of 2026 dated August 05, 2026] granted anticipatory bail to three registered purchasers who were apprehending arrest under Section 132 of the Central Goods and Services Tax Act, 2017 (“the CGST Act”) on the allegation of availing bogus Input Tax Credit (“ITC”) from allegedly fictitious suppliers, and held that a purchaser who is in possession of tax invoices, has paid the invoice value along with GST to the supplier through banking channels and has periodically filed returns, cannot ordinarily be denied ITC or be subjected to custodial interrogation merely on account of supplier-side default, unless fraud or collusion with the supplier is prima facie established.
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