Economic offences and GST fraud can justify denial of bail where allegations show grave financial misconduct despite long custody.

In a bail petition arising from alleged large-scale GST fraud involving fake invoices and wrongful input tax credit, the HC applied the settled principle that economic offences are treated on a different footing while considering bail. It held that the seriousness and magnitude of the alleged financial misconduct outweighed the plea for release, and that long custody by itself was not enough to justify bail where the accusations disclosed grave economic wrongdoing. Bail was declined and the petition was dismissed.

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Issues: Whether regular bail should be granted in a case alleging fraudulent availment and utilisation of input tax credit in a large-scale GST fraud.

Analysis: The petition sought bail under Section 439 of the Code of Criminal Procedure, 1973 in proceedings arising from alleged offences under Sections 68 and 70 of the Central Goods and Services Tax Act, 2017. The allegations concerned a large fraudulent scheme involving fake invoices, substantial wrongful availing of input tax credit, and an economic offence of significant magnitude. The Court applied the settled principle that economic offences stand on a different footing for bail and that long custody alone does not justify release where the allegations disclose grave financial misconduct.

Conclusion: Bail was declined. The petition was dismissed.

Ratio Decidendi: In cases of grave economic offences involving large-scale fraud, mere length of custody is not a sufficient ground for grant of bail.

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