Fake invoicing and wrongful input tax credit allegations led to refusal of bail in a GST evasion matter.

Allegations of organised fake invoicing through dummy entities, without actual supply of goods, were said to have enabled wrongful availment and utilisation of input tax credit and substantial GST evasion. The court noted the seriousness of the allegations and the departmental material, and also referred to the earlier cancellation of bail of a co-accused on similar facts, which had been upheld on further challenge. On that basis, no ground was found to enlarge the applicant on bail, and bail was declined.

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Issues: Whether the applicant was entitled to bail in a case involving allegations of generation of fake invoices, passing on wrongful input tax credit, and large-scale tax evasion under the GST regime.

Analysis: The allegations disclosed organised issuance of fake invoices through dummy entities without actual supply of goods, resulting in alleged wrongful availment and utilisation of input tax credit and substantial tax evasion. The court also noted the earlier cancellation of bail of the co-accused on similar material, which had been affirmed on further challenge. In view of the seriousness of the ations and the material placed by the department, no ground was found to enlarge the applicant on bail.

Conclusion: Bail was declined.

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