Bail in GST fake invoice and input tax credit case declined due to ongoing investigation and evidence risks.

Bail was refused in a GST prosecution alleging fake invoices, irregular input tax credit and large-scale tax evasion, because the court treated the matter as a serious economic offence involving substantial documentary material and an ongoing investigation. The risk that release at that stage could hamper inquiry and impede collection and preservation of evidence was considered significant, so the application was rejected.

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Issues: Whether bail should be granted to the accused in a case alleging generation of fake invoices, availing and passing on irregular input tax credit, and evasion of GST on a large scale.

Analysis: The application was considered in the context of allegations of a serious economic offence involving a huge tax demand, multiple incriminating documents, and an ongoing investigation requiring examination of a large volume of material. The possibility of the accused being enlarged on bail at that stage was viewed as likely to hamper investigation and impair the collection and preservation of evidence.

Outcome: Bail was declined at this stage and the application was rejected.

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