Bail in alleged GST fraud refused where fictitious firms, fake invoices and large-scale input tax credit misuse showed grave economic offence.

Bail under Section 439 CrPC was refused in a prosecution alleging offences under the CGST Act because the materials indicated a serious economic offence involving fictitious firms, fake invoices and bills, and large-scale wrongful availment of input tax credit. The alleged conduct was treated as organised and grave, and the risk of further interference with the prosecution case could not be ruled out at the bail stage. On that basis, the petitioner was found not entitled to bail.

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Issues: Whether the petitioner was entitled to bail under Section 439 of the Code of Criminal Procedure, 1973 in connection with alleged offences under the Central Goods and Services Tax Act, 2017.

Analysis: The allegations disclosed a serious economic offence involving creation of fictitious firms, fake invoices and bills, and unlawful availment of input tax credit on a large scale. The materials indicated that the alleged acts were organised and grave, and the apprehension of further interference with the prosecution case could not be ruled out at the stage of consideration of bail.

Conclusion: Bail was refused.

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