Serious CGST fraud allegations justified refusal of bail where investigation was early and interference risks were present.

Allegations of fraudulent input tax credit availment and wrongful refund under the CGST regime were treated as serious economic offences, and regular bail was refused. The Court noted that the relevant offences were cognizable and non-bailable where the specified tax credit or refund exceeded the prescribed threshold, and applied the settled approach that offences affecting the public exchequer require strict scrutiny. Considering the early stage of investigation, the prima facie nature of the material, and the risks of tampering with evidence or witnesses and absconding, the accused was found not entitled to release on bail.

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Issues: Whether the accused, arrested for alleged fraudulent availment and utilisation of input tax credit and refund under the CGST regime, was entitled to regular bail.

Analysis: The application was examined in the context of the alleged offences under the CGST Act, including fraudulent availment of input tax credit and wrongful refund, and the Court treated the allegations as serious economic offences. The Court relied on the statutory scheme making the relevant offences cognizable and non-bailable where the specified tax credit or refund exceeds the prescribed threshold, and on the settled approach that economic offences affecting the public exchequer are to be viewed seriously. The Court also considered the nature of the allegations, the stage of investigation, the apprehension of tampering with evidence and witnesses, and the risk of absconding, and found that the accused did not merit enlargement on bail.

Conclusion: Bail was declined.

Final Conclusion: The accused was not entitled to release on bail in view of the gravity of the CGST offences and the material then available during investigation.

Ratio Decidendi: In serious economic offences under the CGST Act, where the alleged input tax credit fraud crosses the cognizable and non-bailable threshold and the investigation is at an early stage with a real apprehension of interference, bail may be refused on a prima facie assessment of the material and the surrounding circumstances.

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