Regular bail in GST input tax credit prosecution granted after prolonged custody, short maximum sentence, and pending vires challenge.

Regular bail was granted in a prosecution for alleged wrongful availment of input tax credit on invoices without actual supply of goods, as the Court considered prolonged custody of more than nine months, the maximum prescribed sentence of five years, and the likelihood that trial would not conclude soon. The Court also noted that the vires of the Punjab GST Act was under challenge and that interim bail had already been operating. On these facts, the petitioners were held entitled to regular bail and the interim bail orders were made absolute.

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Issues: Whether the petitioners were entitled to regular bail in a prosecution under Section 132(1)(b)(c) of the Punjab Goods and Services Tax Act, 2017 having regard to the period of custody, the maximum prescribed sentence, and the pending challenge to the vires of the statute.

Analysis: The petitions were for grant of regular bail in a complaint alleging wrongful availment of input tax credit on the basis of invoices without actual supply of goods. The Court noted that the petitioners had undergone custody of more than nine months, the maximum sentence for the offence was five years, and the trial was not likely to conclude soon. The Court also took note that the vires of the Act was under challenge, and that interim bail had already been granted earlier.

Conclusion: The petitioners were held entitled to regular bail, and the interim bail orders were made absolute.

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