Conditional bail in GST prosecution may be granted with deposit and cooperation safeguards while tax liability remains pending.

In a GST prosecution for alleged offences under section 132(1)(a)(b) of the CGST Act, the text notes that tax liability had not yet been finally determined under section 74. It explains that, in such a setting, the Court balanced the custodial concern against the revenue interest, taking account of partial payment and the need for cooperation with the investigation. Conditional bail was therefore considered appropriate, with release tied to a substantial deposit and compliance conditions designed to secure disputed dues pending final assessment.

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Issues: Whether the petitioner was entitled to bail in a prosecution under the Central Goods and Services Tax Act, 2017 before final determination of tax liability under section 74, and whether conditional release could be directed with a deposit obligation.

Analysis: The alleged offences were under section 132(1)(a)(b) of the Central Goods and Services Tax Act, 2017, but the tax liability had not yet been finally assessed under section 74 of that Act. The Court took note of the petitioner's partial payment and of the Supreme Court's approach in a similar GST matter, and considered the disputed GST dues while balancing the custodial issue. In that context, the Court found that conditional bail could be granted with a substantial deposit to secure the revenue interest and with a direction to cooperate with the investigation.

Conclusion: The petitioner was held entitled to bail on conditions, including deposit of a specified amount and cooperation with the investigation.

Final Conclusion: Conditional bail was granted in a GST prosecution, with the release tied to a monetary deposit and continued cooperation while assessment of the tax dues remained pending.

Ratio Decidendi: Where tax liability under the GST framework has not been finally determined, bail in a prosecution for alleged tax evasion may be granted on stringent conditions that protect the revenue interest.

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