Regular bail in GST input tax credit case turns on seized documentary evidence, tax deposits, and no custodial necessity.

Regular bail was granted in a GST prosecution for alleged fraudulent input tax credit, as the investigation was substantially documentary and the evidence had already been seized. The Court noted that the applicant had made substantial tax deposits through the electronic cash ledger and DRC-03, had no past criminal record, and that the prosecution showed no concrete necessity for continued custody, flight risk, or witness influence. Applying the settled principle that detention cannot continue indefinitely and that bail depends on the facts of each case, the Court held further incarceration unjustified and released the applicant on conditions.

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Issues: Whether the applicant, arrested for alleged fraudulent availment and passing on of input tax credit under the GST law, was entitled to regular bail.

Analysis: The allegations arose from a documentary investigation relating to bogus invoicing and ineligible input tax credit, but the record showed substantial deposits and reversal of tax by the applicant, including payment through the electronic cash ledger and DRC-03. The Court noted that more than 10% of the disputed amount had been deposited, the applicant had no past criminal record, the material evidence was documentary and already seized, and the prosecution had not substantiated any real necessity for continued custody or any concrete risk of flight or witness influence. Applying the settled principle that detention cannot be indefinite and that bail depends on the facts of each case, the Court found further incarceration unjustified.

Conclusion: The applicant was held entitled to regular bail.

Final Conclusion: Continued custody was found unnecessary in the circumstances, and liberty was granted subject to conditions.

Ratio Decidendi: Where the investigation is substantially complete, the evidence is documentary and seized, and no concrete material shows custodial necessity or flight risk, regular bail may be granted notwithstanding the seriousness of the GST offence.

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