Fraudulent GST invoicing and wrongful input tax credit allegations justified denial of regular bail during ongoing investigation.

Allegations of fraudulent GST invoicing and wrongful input tax credit justified refusal of regular bail where investigation remained pending. The court noted that invoices and e-way bills were allegedly issued without actual supply of goods, the claimed tax evasion was substantial, and authorities needed to trace the recipient chain and preserve electronic and forensic evidence. It also considered the allegation that the registered office and factory premises were non-existent and the risk of interference with investigation or tampering with evidence. On those facts, regular bail was rejected.

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Issues: Whether the petitioner, accused of issuing fake GST invoices and wrongfully availing input tax credit in a case involving a large alleged tax evasion and pending investigation, was entitled to regular bail.

Analysis: The allegations disclosed that invoices and e-way bills were issued without actual supply of goods, resulting in wrongful availment and utilisation of input tax credit. The investigation was still in progress, the alleged transaction value was substantial, and the respondent authorities asserted the need to investigate the forward chain of recipients and preserve electronic and forensic evidence. The materials also indicated that the registered office and factory premises were said to be non-existent and that there was a possibility of interference with the investigation and tampering with evidence.

Conclusion: The petitioner was not entitled to regular bail.

Final Conclusion: The bail application was rejected in view of the seriousness of the allegations and the pendency of investigation.

Ratio Decidendi: In a case involving serious allegations of fraudulent issuance of GST invoices and wrongful input tax credit, pending investigation and the risk of interference with evidence can justify ing regular bail.

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