Anticipatory bail in GST prosecution granted where alleged evasion was assessed separately and evidence was largely documentary.

In a GST prosecution, anticipatory bail under Section 438 CrPC was considered with reference to the alleged tax evasion figure, the separate GST registrations of two companies, and the largely documentary nature of the material. The Court treated the two entities as distinct and did not aggregate the Department's higher figure against the applicant's company. It also noted the lapse of time since the raid, prior orders on cancellation of registration and expiry of attachment, and the maximum punishment under the GST offence provisions. On those facts, the Court found no basis to deny pre-arrest relief and granted anticipatory bail subject to conditions.

---

---

Issues: Whether anticipatory bail should be granted to the applicant in a prosecution under the GST laws, having regard to the alleged quantum of tax evasion and the contention that the offence would fall within the bailable category under the relevant provisions.

Analysis: The application was under Section 438 of the Code of Criminal Procedure, 1973. The Court noted that the applicant's company was shown to have an alleged tax evasion of less than five crores, while the higher figure placed by the Department included another distinct company having a separate GST registration. The Court treated the two entities as separate and distinct. It also noted the lapse of time since the raid, the earlier orders concerning cancellation of registration and expiry of attachment, and the fact that the material was largely documentary. In these circumstances, and keeping in view the maximum punishment under the GST offence provisions, the Court found no need to deny relief at the pre-arrest stage.

Conclusion: Anticipatory bail was granted to the applicant, subject to conditions.

---