Regular bail in alleged GST economic offence refused after court weighed custody, seriousness, and alleged tax evasion.

Regular bail was refused in a prosecution under the CGST Act arising from alleged clandestine procurement and supply of raw tobacco with substantial duty evasion. The Court considered the seriousness of the economic offence, the magnitude of the alleged evasion, the nature of the accusation, the fact that the complaint had already been filed, the petitioner's custody of about three months, and the maximum punishment of up to five years. On those circumstances, and applying the settled approach that economic offences require serious consideration, the petitioner was not enlarged on regular bail.

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Issues: Whether the petitioner was entitled to regular bail in a prosecution for offences under the Central Goods and Services Tax Act, 2017, having regard to the alleged duty evasion, the nature of the accusation, and the period of custody.

Analysis: The application was considered in the context of alleged economic offences involving clandestine procurement and supply of raw tobacco and a stated tax and duty evasion of Rs.15,57,28,345/-. The Court noted that the petitioner had been in custody for about three months, the complaint had already been filed, and the alleged offences were punishable with imprisonment extending up to five years. Relying on the settled approach that economic offences are to be viewed seriously, the Court assessed the nature of the accusation, the gravity of the offence, the magnitude of the alleged evasion, and the overall circumstances before deciding the bail request.

Conclusion: Bail was declined and the petitioner was not enlarged on regular bail.

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