Supreme Court grants bail in CGST Act case, orders release if investigation not completed.

The petitioner sought regular bail under Section 439 of the CrPC for offenses under the CGST Act. Despite opposition from the respondent, citing a previous denial of bail to a co-accused, the Supreme Court granted bail to the petitioner. The Court noted the ongoing investigation into the petitioner's alleged involvement in creating fake firms and committing fraud. If the investigation was not completed within three months, the trial court was directed to release the petitioner on bail with appropriate conditions. The High Court subsequently ordered the petitioner's release if the investigation remained incomplete within the specified period, ensuring compliance with the Supreme Court's directive.

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Issues: Regular bail under Section 439 CrPC for offences under CGST Act, 2017.

Analysis:
The petitioner sought regular bail under Section 439 of the Code of Criminal Procedure, 1973 for offenses under Sections 132(1)(B), (C), (D), (F), (I), (L) of the Central Goods and Services Tax Act, 2017. The petitioner had been in custody since 03.08.2018. The maximum sentence for the offenses was five years. The respondent opposed the bail petition, citing the dismissal of a similar bail petition by a co-accused, Sandeep Goyal, by the High Court. The Supreme Court had also declined bail to Sandeep Goyal but directed that if the investigation was not completed within three months, he should be released on bail by the trial court with appropriate conditions.

The Supreme Court's order dated 17.04.2020 highlighted that the petitioner was accused of creating fake firms and committing fraud amounting to Rs. 74,00,00,000. The additional solicitor general mentioned that the investigation was ongoing, with more fake firms linked to the petitioner being uncovered. Despite some co-accused being granted bail, the petitioner had already served one year and eight months in custody. The Supreme Court ordered that if the investigation was not completed within three months, the petitioner should be released on bail by the trial court with suitable terms. If the investigation concluded within the stipulated time, the petitioner could apply for bail, to be considered by the trial court on its merits.

In line with the Supreme Court's directive, the High Court ordered that if the investigation was not completed within three months from 17.04.2020, the petitioner should be released on bail by the trial court. If the investigation concluded within the specified period, the petitioner could move the trial court for bail, which would be decided on its merits according to the law. The petition seeking regular bail was disposed of accordingly, adhering to the Supreme Court's order and ensuring the petitioner's rights were protected within the legal framework.

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