Anticipatory bail in alleged fake invoice GST evasion case rejected due to ongoing investigation and need for custodial interrogation.

Allegations of fake invoices, wrongful availment and passing on of input tax credit, and GST evasion were treated as a serious economic offence under the CGST framework. The court noted that the alleged circulation of invoices without actual movement of goods made the offences cognizable and non-bailable on the facts stated, and that the investigation remained in progress. It also recorded that the applicant had not fully cooperated and that documents and movement records were still required, making custodial interrogation necessary for effective investigation. On that basis, anticipatory bail was rejected.

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Issues: Whether the applicant was entitled to anticipatory bail in a prosecution concerning alleged issuance and use of fake invoices, wrongful availment and passing on of input tax credit, and evasion of GST.

Analysis: The application arose from allegations of an economic offence involving circulation of invoices without actual movement of goods, wrongful availing and passing on of input tax credit, and substantial tax evasion. The Court noted that the offences under the Central Goods and Services Tax Act, 2017 were serious, cognizable and non-bailable on the facts alleged, and that the investigation was still in progress. It also recorded that the applicant had not fully cooperated with the inquiry, relevant documents and movement records were still required, and custodial interrogation was considered necessary for effective investigation.

Conclusion: The applicant was not entitled to anticipatory bail and the application was rejected.

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