Case-specific bail in alleged GST input tax credit fraud upheld despite economic offence allegations and departmental attachment.

In a GST prosecution for alleged fraudulent input tax credit through fake purchases, the HC held that seriousness of the economic offence did not by itself bar regular bail. The Court emphasised that bail must be decided on the facts of each case, that the alleged offence carried a maximum sentence of five years and was triable by the Magisterial Court, and that the truth of rival factual claims need not be determined at the bail stage. Considering the statutory compounding provision, departmental attachment, and the applicant's medical condition, the Court granted regular bail subject to conditions.

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Issues: Whether the applicant, accused of availing ineligible input tax credit by showing alleged fake purchases under the GST enactments, was entitled to regular bail under Section 439 of the Code of Criminal Procedure, 1973.

Analysis: The allegations related to fraudulent availment of input tax credit and were treated as an economic offence, but the Court held that bail must still be considered on the facts of the individual case. It noted that the alleged offence under Section 132(1)(c) of the GST enactments carried a maximum punishment of five years, that the matter was triable by the Magisterial Court, and that the Court was not required at the bail stage to decide the truth of the rival factual claims. The Court also took into account the statutory compounding provision under Section 138 of the GST enactments, the attachment already made by the Department, and the applicant's medical condition.

Conclusion: The applicant was granted regular bail, subject to conditions, as the Court found it appropriate to exercise discretion in his favour.

Final Conclusion: The proceeding was finally determined by enlarging the applicant on regular bail in the GST prosecution, subject to compliance with the imposed conditions.

Ratio Decidendi: In bail matters arising from economic offences, the seriousness of the allegation is relevant, but the decision remains case-specific and bail cannot be denied solely on the ground of gravity where the surrounding circumstances justify release.

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