Bail in GST fraud case granted where custody was prolonged, investigation was complete, and evidence was mainly documentary.

Bail was granted in an alleged GST fraud matter involving fictitious registrations, bogus exports, and wrongful input tax credit and refund claims, applying the settled principle that bail is the rule and jail is the exception under Article 21. Although the allegations concerned an economic offence, the Court treated the completion of the prosecution report, more than four months of custody, and the maximum punishment of five years as significant factors favouring release. It also noted that the evidence was mainly documentary and electronic, with official witnesses, so the risk of tampering or witness interference was limited. Release was ordered on strict conditions.

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Issues: Whether bail should be granted to the petitioner in a case alleging fraudulent creation of GST registrations, bogus exports, and wrongful availment of input tax credit and refund under the GST regime.

Analysis: The prayer for bail was considered on the settled principles that bail is the rule and jail is the exception, and that personal liberty under Article 21 must be protected pending trial. The allegations were serious and related to economic offence, but the Court noted that the final prosecution report had been filed, the petitioner had already remained in custody for more than four months, and the maximum punishment was imprisonment up to five years. The evidence was held to be primarily documentary and electronic, with official witnesses, reducing the apprehension of tampering or influencing witnesses. The Court applied the principles governing bail in economic offences and found the case fit for release on stringent conditions.

Conclusion: Bail was granted to the petitioner subject to strict conditions.

Ratio Decidendi: In a pending trial for an economic offence, bail may be granted where custody has continued for a substantial period, investigation is substantially complete, and the evidence is mainly documentary or electronic with no substantial risk of witness interference or tampering.

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