Anticipatory bail refused in alleged fake input tax credit fraud case where custodial interrogation remained necessary.

Anticipatory bail was refused in a case alleging fraudulent availment and passing on of input tax credit through fictitious and non-existent firms. The court noted statements indicating that the accused was managing the firms involved, alleged misuse of input tax credit from entities lacking genuine existence, and non-compliance with an earlier undertaking to deposit a specified amount. As the investigation was still at an initial stage, custodial interrogation was treated as a material factor against pre-arrest bail, and the application was dismissed.

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Issues: Whether anticipatory bail should be granted in a case alleging fraudulent availment and passing on of input tax credit through fictitious/non-existent firms.

Analysis: The application was considered in the light of statements indicating that the accused was managing the firms involved and of allegations that fraudulent input tax credit had been availed from non-existent entities. The record also reflected non-compliance with the earlier undertaking to deposit a specified amount, while the investigation was still at an initial stage. In these circumstances, the need for custodial interrogation was treated as a material consideration against the grant of pre-arrest bail.

Conclusion: Anticipatory bail was refused and the application was dismissed.

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