Anticipatory bail in GST complaint: disputed input tax credit quantum left for trial court, interim protection made absolute.

In a GST complaint, the Court treated the dispute over the alleged wrongful input tax credit as a factual matter not suitable for determination at the anticipatory bail stage. The exact quantum, including the respondent's contention that it crossed the level said to affect bailability, was left for the trial court to assess on evidence. Because the petitioner had already obtained interim protection and complied with the direction to appear before the trial court, the interim order was made absolute subject to the usual conditions for anticipatory bail.

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Issues: Whether the petitioner was entitled to anticipatory bail in the complaint arising under the GST laws, and whether the disputed quantum of alleged wrongful input tax credit should be examined at the bail stage.

Analysis: The petitioner had already been granted interim protection and had complied with the direction to appear before the trial court. The parties disputed the amount of alleged wrongful input tax credit and the respondent asserted that the amount exceeded the threshold said to make the offence non-bailable. The Court declined to enter into the merits of that dispute, holding that the question of the exact amount involved was for the trial court to determine on the basis of evidence. Confined to the prayer for anticipatory bail, and noting the petitioner's compliance with interim conditions, the Court made the interim order absolute subject to the conditions contemplated under Section 438 of the Code of Criminal Procedure, 1973.

Conclusion: Anticipatory bail was granted and the petition was allowed.

Ratio Decidendi: At the stage of anticipatory bail, disputed factual questions bearing on the merits of the alleged tax evasion should not be adjudicated, and interim protection may be continued or made absolute where the applicant has complied with the bail conditions.

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