Bail in fake invoice and input tax credit case declined after investigation showed no movement of goods.

A bail request in a prosecution alleging fake invoice creation and wrongful passing of input tax credit under the CGST Act was examined on the basis of investigation materials showing no movement of goods and generation of invoices to avail and pass credit to multiple entities. The court treated the alleged conduct and collected material as serious enough to reject release under Section 439 CrPC. Bail was declined.

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Issues: Whether the petitioner was entitled to bail in a prosecution alleging generation of fake invoices and passing of input tax credit under the Central Goods and Services Tax Act, 2017.

Analysis: The petitioner sought bail under Section 439 of the Code of Criminal Procedure, 1973 in a case alleging creation and transfer of fake bills and input tax credit to multiple entities. The record was treated as showing that there was no movement of goods and that fake invoices had been generated to avail and pass on input tax credit. In view of the nature and extent of the alleged and the materials collected during investigation, the request for bail was not found fit for acceptance.

Conclusion: Bail was declined.

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