Regular bail in GST fake invoice case granted where investigation had not materially progressed and custody was no longer necessary.

Regular bail was granted in a GST prosecution alleging wrongful availment of Input Tax Credit through fake invoices because the investigation had not materially progressed and continued custody was not shown to be necessary. The Court noted that the petitioner had been in judicial custody since 23-09-2020, that the respondents had not explained the stage of investigation, and that revenue interests were already protected by conditions in connected proceedings. Bail was therefore allowed subject to safeguards requiring attendance, cooperation with investigation, restraint on travel, and no interference with witnesses.

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Issues: Whether the petitioner was entitled to regular bail in proceedings arising out of an alleged offence under the Goods and Services Tax law.

Analysis: The petition was for regular bail under Section 439 of the Code of Criminal Procedure, 1973 in relation to an accusation under Section 132(1)(i) of the Central Goods and Services Tax Act, 2017. The allegations concerned wrongful availment of Input Tax Credit on the basis of fake invoices. The Court noted that the petitioner had been in judicial custody since 23-09-2020 and that the respondents had not explained the stage or progress of the investigation. The Court also took note of the protective conditions already imposed in connected proceedings and considered that the revenue interest was being safeguarded.

Conclusion: Regular bail was granted to the petitioner, subject to conditions.

Final Conclusion: The petition was allowed and the accused was enlarged on bail with safeguards for attendance, cooperation with investigation, and restraint on travel and interference with witnesses.

Ratio Decidendi: When the investigation has not materially progressed and custody is no longer shown to be necessary, regular bail may be granted subject to protective conditions even in a GST offence case.

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