Regular bail in GST fake invoice case granted where investigation was advanced and custody was no longer needed.

Bail was granted in a CGST prosecution alleging fraudulent availment and passing of input tax credit, where the Court found the allegations of fake supply chains, incorrect e-way bill particulars and bogus invoices insufficient at the bail stage to justify continued detention. It noted the stage of investigation, the custody already undergone, and that bail cannot be used as punishment, while also recording that the accused was no longer required for further investigation. Release was ordered on bail bond and surety, subject to cooperation with investigation and travel restrictions without permission.

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Issues: Whether regular bail should be granted to the accused in a prosecution alleging fraudulent availment and passing of input tax credit under the CGST law.

Analysis: The allegations concerned fake and non-genuine supply chains, incorrect vehicle particulars in e-way bills, and suspected use of bogus invoices, which created doubt about the accused's role in the alleged evasion. At the same time, the detention was considered in the context of the stage of investigation, the period already undergone in custody, and the principle that bail is not to be refused as a form of punishment. The Court also noted that the accused was no longer required for further investigation and that, if a complaint is filed, the prosecution and recovery consequences under the GST law would continue in due course.

Conclusion: Bail was granted to the accused on furnishing of bail bond and surety, subject to conditions of cooperation with investigation and restriction on travel without permission.

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