Anticipatory bail in GST investigation granted where custodial interrogation was unnecessary and arrest safeguards were not met.

Anticipatory bail can be granted in a GST investigation where the applicant shows a reasonable apprehension of arrest and the investigating agency does not demonstrate a need for custodial interrogation. The Kerala HC noted that arrest under the CGST Act is confined to specified offences and is subject to safeguards, including Commissioner authorisation based on reasons to believe and procedural protections under the CrPC and Article 22. On the facts, the material then available did not show sufficient incriminating evidence to justify immediate arrest, and the applicant's willingness to cooperate and produce documents supported relief. The applicant was held entitled to anticipatory bail.

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Issues: Whether the applicant was entitled to anticipatory bail in connection with the GST investigation.

Analysis: The application arose from allegations of serious GST evasion and use of another entity's credentials, but the applicant had not yet been arraigned as an accused. The statutory scheme under the Central Goods and Services Tax Act, 2017 permits arrest only for specified offences and builds in safeguards through authorisation by the Commissioner on reasons to believe, alongside procedural protections consistent with the Code of Criminal Procedure, 1973 and Article 22 of the Constitution of India. On the facts, the material then available did not show concrete incriminating evidence sufficient to justify immediate arrest, and the applicant expressed willingness to cooperate and produce documents. The Court found that custodial interrogation was not shown to be necessary and that the apprehension of arrest was reasonable.

Conclusion: The applicant was entitled to anticipatory bail.

Ratio Decidendi: Anticipatory bail may be granted in a GST investigation where the applicant shows a reasonable apprehension of arrest and the investigating agency has not demonstrated the necessity of custodial interrogation or sufficient material justifying arrest under the statutory safeguards.

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