Anticipatory bail in GST evasion matters may be refused where bogus entities and fake invoices justify further investigation.

Anticipatory bail in a GST prosecution may be refused where the material collected in search and investigation indicates prima facie large-scale evasion through allegedly non-existent entities and bogus invoices. The court considered the seriousness of the allegations, the alleged wrongful input tax credit, statements recorded under GST summons, and the possibility of further investigation, and found that cooperation by the applicant did not outweigh the need for deeper inquiry. The request for anticipatory bail was rejected because the alleged offences were treated as cognizable and non-bailable and custodial interrogation was considered necessary.

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Issues: Whether the applicant was entitled to anticipatory bail in respect of alleged offences under the Goods and Services Tax regime.

Analysis: The application was tested on the seriousness of the allegations, the quantum of alleged wrongful input tax credit, the material collected during search and investigation, the summons and statements recorded under the GST law, and the possibility of further investigation. The Court noted that the investigation indicated use of allegedly non-existent entities and bogus invoices, the alleged offence was treated as cognizable and non-bailable, and the plea of cooperation was not sufficient to negate the need for investigation.

Conclusion: The request for anticipatory bail was rejected.

Ratio Decidendi: Anticipatory bail may be declined where the investigation discloses a prima facie large-scale GST evasion through allegedly bogus entities and fake invoices, and further custodial interrogation or thorough investigation is considered necessary.

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