GST input tax credit dispute: bail justified where invoices, e-way bills, supplier existence, and cooperation supported the accused.

Bail was granted in a GST prosecution alleging wrongful input tax credit claim because the petitioner produced tax invoices and e-way bills, the suppliers were shown to exist, and the disputed credit had fallen below the relevant threshold after part-payment. The Court also noted the petitioner's cooperation with the investigation, continued custody since 28.08.2019, and the fact that the firm's partners had already received protection from the Supreme Court. On these facts, bail was considered justified in relation to the alleged GST offence.

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Issues: Whether the petitioner was entitled to bail in relation to the alleged wrongful claim of Input Tax Credit under the goods and services tax law.

Analysis: The petitioner produced tax invoices and e-way bills, and the record indicated that the suppliers were in existence. The disputed tax credit, after deposit of part of the amount, was treated as falling below the relevant threshold. The petitioner had cooperated with the investigation, remained in custody since 28.08.2019, and the partners of the firm had already been granted protection by the Supreme Court. In these circumstances, bail was considered justified.

Conclusion: Bail was granted to the petitioner.

Ratio Decidendi: In a prosecution under the goods and services tax law, where the disputed tax credit is shown to have fallen below the relevant threshold and the accused has cooperated with investigation, bail may be allowed on the facts of the case.

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