Bail in fake invoice and Input Tax Credit prosecution declined as investigation remained ongoing and allegations were serious.

In a prosecution under the Central Goods and Services Tax Act, 2017 involving alleged creation of fake firms, issuance of fake invoices and wrongful availment of Input Tax Credit, the Rajasthan HC declined to grant bail. The Court noted that the investigation was still in progress and considered the allegations serious in nature. On that factual basis, it found no ground to exercise discretionary relief in favour of the petitioner, and the bail application was rejected.

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Issues: Whether the petitioner was entitled to bail in a prosecution under the Central Goods and Services Tax Act, 2017.

Analysis: The application was considered in the context of allegations of creation of fake firms, issuance of fake invoices, and wrongful availment of Input Tax Credit. The material placed indicated that the investigation was still in progress and that the allegations were in nature. On these facts, the Court found no basis to exercise discretion in favour of release on bail.

Conclusion: The bail application was rejected.

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