Bail in CGST evasion case allowed with monetary conditions and sureties after balancing custody, parity, and trial stage.

Bail was granted in a CGST prosecution concerning alleged tax evasion and wrongful availment of input tax credit, with the Court considering admitted evasion, parity, custody, the nature of the offence, and the stage of trial. Without entering into the merits of the prosecution case, the Court found it appropriate to enlarge the petitioners on bail subject to monetary conditions and sureties. Each petitioner was required to deposit a specified sum before the department under protest and furnish personal bonds and sureties as directed.

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Issues: Whether the petitioners were entitled to bail in a case alleging offence under the Central Goods and Services Tax Act, 2017, and if so, on what conditions.

Analysis: The petitions were for bail under Section 439 of the Code of Criminal Procedure, 1973 in respect of alleged evasion of tax and wrongful availment of input tax credit. The Court noted the admitted tax evasion and the benefit of input tax credit taken by the petitioners, but also considered the submissions on parity, custody, the nature of the offence, and the stage of trial. Balancing these factors, and expressly without entering into the merits of the prosecution case, the Court found it just to enlarge the petitioners on bail subject to monetary conditions and sureties.

Conclusion: Bail was granted to the petitioners subject to each petitioner depositing Rs. 2 crores before the department under protest and furnishing personal bonds and sureties as directed.

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