Regular bail in alleged GST fraud prosecution after investigation ended and complaint was filed

A petitioner prosecuted under the CGST Act for alleged fraudulent input tax credit and refund claims was granted regular bail after the Court found that investigation was complete, the complaint had been filed, and continued custody since 26.05.2022 would serve no useful purpose. The Court also noted that co-accused had already been enlarged on bail and distinguished prosecution authorities relied on as involving ongoing investigation or situations requiring custodial presence. Bail was therefore ordered subject to conditions.

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Issues: Whether the petitioner, facing prosecution under the Central Goods and Services Tax Act, 2017 for alleged fraudulent input tax credit and refund claims, was entitled to regular bail after completion of investigation and filing of complaint.

Analysis: The prosecution case was founded on allegations of a bogus ITC and refund racket involving non-existent firms and false documentation. The Court noted that investigation stood complete, the complaint had already been filed, and the petitioner had been in custody since 26.05.2022. It also noticed that co-accused had already been granted bail, and that continued custody would not serve any useful purpose. The Court distinguished decisions relied upon by the prosecution as turning on situations where investigation was still ongoing or custodial presence was required.

Conclusion: The petitioner was held entitled to regular bail and was ordered to be released on bail, subject to conditions.

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