GST bail in alleged input tax credit fraud granted where investigation was substantially complete and custody was unnecessary.

In an alleged GST economic offence involving fictitious purchases and wrongful input tax credit, regular bail was granted because the investigation had substantially progressed, the documentary material was already collected and filed, and continued custody was not shown to be necessary for further inquiry. The Court considered the seriousness of the allegation, the stage of investigation, the presumption that bail is the rule and refusal the exception, and the need to secure the accused's presence at trial. Provisional attachment of property and part payment were also relevant factual factors against further custodial detention.

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Issues: Whether regular bail should be granted to an arrested for alleged fraudulent availment of input tax credit under the GST laws.

Analysis: The allegations concerned fictitious purchases and wrongful availment of input tax credit, but the investigation had substantially progressed and the documentary material had already been collected and filed with the complaint. The Court considered the seriousness of the alleged economic offence, the prescribed punishment, the stage of investigation, and the principle that bail is the rule and refusal the exception. It also noted that continued custody was not shown to be necessary for further investigation and that the accused would face trial and have an opportunity to defend the case. The Court further observed that the property had been provisionally attached and part payment had been made, which also weighed against further custodial detention.

Conclusion: Regular bail was granted in favour of the applicant.

Ratio Decidendi: In alleged GST economic offences, bail cannot be denied merely on the seriousness of the allegation if investigation is substantially complete and custodial detention is not for further inquiry; the decision must turn on the facts of the case, including the need to secure the accused's presence at trial.

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