GST arrest bail granted where liability was unquantified and custodial interrogation was not shown to be necessary.

Regular bail was granted in a GST arrest matter involving alleged fraudulent availment and passing on of input tax credit, because adjudication had not been completed and the exact tax liability or revenue loss had not been quantified. The Court noted that substantial reversals had already been made, there was no material to show the accused was a habitual offender, and no credible basis to require further custodial interrogation. It also found no demonstrated risk of tampering with evidence or obstructing the investigation, so continued detention was not warranted and release on bail was ordered subject to conditions.

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Issues: Whether regular bail should be granted in a GST arrest case where adjudication and quantification of the alleged liability had not yet been undertaken, and whether the accused's continued custody was necessary for investigation.

Analysis: The application was considered in the context of allegations of fraudulent availment and passing on of input tax credit under the GST regime. The material before the Court did not show that the department had completed adjudication or determined the exact liability or loss to the revenue, and the accused had already made substantial reversals. The Court also noted the absence of any allegation that the accused was a habitual offender, and found no credible basis to infer that he was required for further custodial interrogation or that his release would result in tampering with evidence or obstruction of investigation.

Conclusion: Regular bail was granted to the accused.

Final Conclusion: The Court found that, on the facts presented, continued detention was not warranted and the accused was entitled to release on bail subject to conditions.

Ratio Decidendi: In GST prosecution matters, where tax liability has not been finally determined and custodial interrogation is not shown to be necessary, bail may be granted in the absence of indicators such as habitual offending or risk to investigation.

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