Anticipatory bail in fake invoice prosecution under GST Act granted with strict conditions to secure investigation and trial.

Anticipatory bail was granted in a prosecution under the CGST Act concerning alleged issuance of fake invoices without actual supply of goods. The Court treated the alleged conduct as an offence under Section 132, noted that it was punishable with imprisonment up to five years and fine, and observed that the Act also permits compounding by the Commissioner under Section 138. It held that the central consideration in an anticipatory bail request is whether the accused can be secured for investigation and trial, and found that this could be achieved by imposing strict conditions. Bail was therefore granted subject to conditions.

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Issues: Whether anticipatory bail should be granted in a prosecution for alleged issuance of fake invoices under the Central Goods and Services Tax Act, 2017.

Analysis: The allegations were that invoices had been issued without actual supply of goods, attracting Section 132 of the Central Goods and Services Tax Act, 2017. The Court noted that the alleged offence was punishable with imprisonment up to five years and fine, and that the statutory scheme also provided for compounding by the Commissioner under Section 138. The Court further held that the governing consideration in an anticipatory bail request is whether the accused can be secured for investigation and trial, and that this could be achieved by imposing strict conditions.

Conclusion: Anticipatory bail was granted to the petitioners, subject to conditions.

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