Fresh arrest during ongoing GST inquiry is unjustified when prior bail exists and custody is not necessary for investigation.

In a GST investigation, continued custody was considered unnecessary where the accused was already on bail, the inquiry was still ongoing, no complaint had been filed, and substantial security for the alleged liability had already been furnished through cash deposits, blocked credit and title deeds. The text states that a fresh arrest for alleged non-cooperation was not justified without first seeking cancellation of the earlier bail, because pre-trial detention should be used only where necessary to secure attendance, prevent interference with evidence, or meet other compelling grounds. Bail was therefore treated as justified, subject to conditions to join the investigation, avoid tampering with evidence, and not leave the country without permission.

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Issues: Whether bail should be granted in a GST investigation where the accused was re-arrested during continuing inquiry, and whether the departmental material justified continued custody.

Analysis: The accused had earlier been enlarged on bail and had secured a substantial part of the alleged tax exposure by cash deposits, blocked credit and title deeds. The inquiry was still continuing, no complaint had yet been filed, and the departmental claim of non-cooperation did not justify a fresh arrest without first seeking cancellation of the earlier bail. The order also emphasises that bail is governed by the principle that personal liberty should not be curtailed unless custody is necessary to secure attendance, prevent interference with evidence, or meet other compelling grounds.

Conclusion: Bail was held to be justified and the accused was entitled to release on the terms imposed.

Final Conclusion: The application was allowed, and the accused was admitted to bail subject to conditions to join investigation, avoid tampering with evidence, and not leave the country without permission.

Ratio Decidendi: Where an accused is already on bail, a fresh arrest during ongoing investigation is not justified merely for non-cooperation; the proper course is to seek cancellation of bail, and pre-trial custody cannot be maintained when substantial security for the alleged liability has already been furnished.

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