Bail in alleged GST fraud with input tax credit misuse was granted subject to bond, sureties and deposit conditions.

In a bail matter arising from alleged fake firms and wrongful availment of input tax credit under the CGST Act, the Court considered the seriousness of the economic allegations, the petitioner's custody since January 2022, parity submissions and delay in trial. While noting that economic offences require due caution, the Court granted bail without expressing any view on merits. Bail was made conditional on execution of a personal bond, furnishing sureties, and deposit of a substantial sum before the department under protest.

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Issues: Whether the petitioner, accused of offences under the Central Goods and Services Tax Act, 2017 involving alleged fake firms and wrongful availment of input tax credit, was entitled to bail under Section 439 of the Code of Criminal Procedure, 1973, and whether bail could be granted subject to deposit of part of the alleged tax loss.

Analysis: The petitioner was in custody since 24.01.2022 and the allegations concerned evasion of tax and wrongful availment of input tax credit of about Rs.88.33 crores. The Court weighed the nature of the allegations, the submissions on parity and delay in trial, and the principle that economic offences are to be considered with due seriousness while exercising bail discretion. Without expressing any opinion on the merits, the Court found it just and proper to enlarge the petitioner on bail, while requiring a monetary deposit of Rs.5 crores before the respondent department under protest.

Conclusion: Bail was granted to the petitioner on the conditions imposed by the Court, including execution of personal bond and sureties and deposit of Rs.5 crores.

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