Anticipatory bail refused in alleged GST fraud case involving fabricated documents, false registration, and bogus input tax credit claims.

Allegations of fabricated rent papers, a false business address, and fraudulent availment of input tax credit were treated as serious economic offences, and anticipatory bail was refused. The Court noted prima facie irregularities in the GST record, including contradictory returns, disputed transit sale claims, absence of the alleged premises or factory, and payment to a different firm than the supposed sellers. The petitioner's argument that criminal proceedings were premature because adjudication under the GST provisions had not been completed was held insufficient to justify protection, and bail was declined.

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Issues: Whether anticipatory bail should be granted in a case involving alleged forged documents, wrongful registration, and fraudulent availment of input tax credit under the Jharkhand Goods and Services Tax Act, 2017, where the petitioner contended that criminal proceedings were initiated before adjudication under the GST provisions.

Analysis: The petitioner was accused of creating fabricated rent papers and other documents to show a false business address, obtaining registration on that basis, and availing large input tax credit without inward supply of goods. The record referred to notice and inquiry proceedings under the GST framework, but the allegations were found to disclose serious irregularities, including contradictory GSTR-2A and GSTR-3B figures, disputed transit sale claims, absence of any found premises or factory, and payment made to a different firm instead of the alleged sellers. The Court treated the matter as one involving serious economic offences and held that the contention based on absence of a final adjudication under section 74 of the Jharkhand Goods and Services Tax Act, 2017 was not sufficient to grant protection.

Conclusion: Anticipatory bail was declined.

Ratio Decidendi: In a case disclosing prima facie forged documents, fabricated business premises, and alleged fraudulent input tax credit of a substantial amount, anticipatory bail may be refused notwithstanding the plea that adjudication under the GST provisions has not been completed.

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