Anticipatory bail refused in fake GST invoice probe after seized records and statements indicated a systematic fraud scheme.

Anticipatory bail was refused in a CGST investigation alleging issuance of fake GST invoices and evasion of tax. The court treated the applicant's statement under investigation, the accountant's statement, and seized account books and registers as material showing a systematic scheme to issue fake invoices and defraud the exchequer. The plea that the statement was obtained under coercion was not accepted at that stage, as the applicant had been given time to join investigation and had court protection. On the available material, the court held that discretionary pre-arrest relief was not justified and dismissed the application.

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Issues: Whether anticipatory bail should be granted to an applicant accused of involvement in issuing fake GST invoices and facing investigation under the CGST regime.

Analysis: The application was considered in the light of the applicant's statement recorded during investigation under Section 70, the statement of the accountant, and the seized account books and registers, which were treated as indicating a systematic scheme to issue fake invoices and defraud the exchequer. The plea that the statement was obtained under coercion was not accepted at this stage, as the applicant had been given time to join investigation and had court protection. On the material before it, the Court found it highly improbable that such an inculpatory statement was compelled by oral threat and held that the case did not justify the discretionary relief of anticipatory bail.

Conclusion: Anticipatory bail was refused and the application was dismissed.

Final Conclusion: The investigation material was found sufficient to deny pre-arrest protection in a case involving alleged fake GST invoicing and related account records.

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