Anticipatory bail refused in GST input tax credit fraud allegations involving dummy entities and risk of witness tampering.

Anticipatory bail was refused in a GST prosecution alleging fraudulent availment of input tax credit without actual supply of goods. The Court relied on witness statements and material indicating dummy or non-existent entities, treated the case as an economic offence, and noted the applicant's earlier similar allegation. As the investigation was at an early stage and there was a reasonable apprehension of tampering with evidence or influencing witnesses, the Court found no basis to grant the discretionary relief. Anticipatory bail was declined.

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Issues: Whether anticipatory bail should be granted in a prosecution alleging fraudulent availment of input tax credit under the GST regime.

Analysis: The application was examined in the context of allegations that input tax credit had been availed without actual supply of goods, supported by witness statements and material indicating the existence of dummy or non-existent entities. The Court also considered that the matter involved an economic offence, that the applicant had earlier faced a similar allegation, that the investigation was at an initial stage, and that there was a reasonable apprehension of tampering with evidence or influencing witnesses. On these facts, the Court found no ground to extend the discretionary relief of anticipatory bail.

Conclusion: Anticipatory bail was declined.

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