Bail in GST input tax credit fraud case granted after charge-sheet, long custody, and no need for custodial interrogation.

Bail was granted in a GST prosecution alleging wrongful input tax credit and tax evasion where invoices were said to have been issued without actual outward supply. The Court noted that the alleged offences carried a maximum sentence of up to one year, the charge-sheet had already been filed, the applicant had remained in custody for more than one year, custodial interrogation was no longer required, and there was no criminal history. On those facts, continued incarceration was found unnecessary for the trial, and the applicant was held entitled to bail on terms.

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Issues: Whether the applicant was entitled to bail in a case alleging wrongful claim of input tax credit and tax evasion under the goods and services tax law.

Analysis: The allegations were that tax invoices were issued without actual outward supply and that wrong input tax credit had been claimed. The Court noted that the maximum punishment attracted by the alleged tax evasion and the alleged wrongful claim of input tax credit was imprisonment up to one year. It also took into account that the applicant had been in custody for more than one year, the charge-sheet had already been filed, custodial interrogation was no longer required, and there was no criminal history. In these circumstances, continued incarceration was found unnecessary for the purposes of trial.

Conclusion: The applicant was held entitled to bail.

Final Conclusion: Bail was granted on terms, with no observation on the merits of the case.

Ratio Decidendi: Where the alleged offence carries a relatively limited maximum sentence, the charge-sheet has been filed, the accused has remained in custody for a substantial period, and there are no adverse antecedents, bail may be granted absent a necessity for further custodial interrogation.

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