GST tax evasion below the relevant threshold was treated as bailable and non-cognizable, supporting bail on suitable conditions.

An applicant facing allegations of wrongful input tax credit claims and GST tax evasion was considered for bail on the footing that the principal alleged evasion was below the threshold attracting a punishment of up to three years. On that basis, the offence was treated as bailable and non-cognizable under the relevant GST provisions. The Court also noted the applicant's clean criminal antecedents and found no reason to refuse bail. Bail was therefore granted, subject to furnishing the prescribed bond, sureties, and compliance with conditions.

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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 application was considered on the basis that the principal allegation related to evasion of tax of less than five hundred lakhs, attracting the statutory punishment stated to extend up to three years. On that footing, the offence was treated as bailable and non-cognizable under the relevant provisions. The applicant's clean criminal antecedents were also taken into account, and the Court found no reason to deny bail.

Conclusion: The applicant was held entitled to bail.

Final Conclusion: The bail application was allowed and the applicant was directed to be released on bail on furnishing the prescribed bond and sureties, subject to conditions.

Ratio Decidendi: Where the principal goods and services tax offence is within the category treated as bailable and non-cognizable, and the accused has no criminal history, bail may be granted on suitable conditions.

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