Regular bail in alleged VAT fraud matters granted where manipulation issues required trial evidence

Regular bail was granted where allegations of fraudulent VAT entries, misuse of login credentials, and manipulation of challans raised issues that required trial evidence, including the manner of manipulation, possible connivance, and any illegal gratification. The Court noted that false postings in the VAT system and alleged non-verification of manual challans were matters not able at the bail stage on the available material. As the charge-sheet had been filed and the facts and circumstances justified discretion, bail was allowed.

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Issues: Whether the applicant was entitled to regular bail in a case alleging fraudulent entries in the VAT system, misuse of login credentials, and loss to the Government treasury.

Analysis: The allegations related to manipulation of challans, false postings in the VAT system, and alleged non-verification of manual challans in assessments of dealers. The material placed before the Court indicated that the manner in which the challans were manipulated, whether the applicant had connivance, and whether any illegal gratification was received were matters requiring evidence at trial. The charge-sheet had been filed and the Court found that, on the facts and circumstances, discretion could be exercised in favour of the applicant.

Conclusion: Regular bail was granted to the applicant.

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