Bail in GST fraud prosecution granted where evidence was largely documentary and investigation had substantially progressed.

In a prosecution for alleged GST fraud involving fictitious firms, fake invoices and wrongful input tax credit, the HC held that bail must be assessed on the overall balance of accusation, evidence, punishment severity, risk of tampering and the interests of justice. Because the case was largely documentary, the charge-sheet had been filed and the investigation had substantially progressed, prolonged pre-trial custody was not justified. The petitioner was therefore granted bail subject to conditions.

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Issues: Whether the petitioner, facing prosecution for alleged GST fraud and wrongful availing and passing on of input tax credit, was entitled to bail under the Code of Criminal Procedure, 1973.

Analysis: The complaint alleged creation of fictitious firms, issuance of fake invoices, and large-scale availing and passing on of bogus input tax credit. The Court noted that the case was based largely on documentary material, that the charge-sheet had been filed, and that the matter was still at a preliminary stage. In considering bail, the Court relied on the settled principle that no rigid formula governs bail and that the nature of accusations, evidence, severity of punishment, likelihood of tampering with evidence, and the broader interests of justice must be balanced. The Court also took note of the need to avoid prolonged pre-trial custody where the investigation had substantially progressed.

Conclusion: The petitioner was held entitled to bail, subject to conditions, and the application was allowed.

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