Bail in alleged GST input tax credit fraud granted with deposit condition and revenue safeguards

Bail was granted in a GST prosecution alleging forged bills and wrongful availment of input tax credit, the Court treating the alleged offence as punishable up to three years and noting that the applicant was implicated through the memorandum of the main accused. The Court also relied on the applicant's readiness to deposit 5% of the amount linked to the transactions and imposed safeguards to protect revenue interests. Release was made conditional on deposit with the GST authorities, furnishing a personal bond and solvent sureties, and compliance with the conditions under Section 437(3) of the CrPC.

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Issues: Whether the applicant was entitled to bail in a case alleging forged bills and wrongful availment of input tax credit, and if so, on what conditions.

Analysis: The applicant was in custody in connection with allegations of forgery and wrongful gain through input tax credit. The Court noted that the offence under the GST law was punishable up to three years, that the applicant was implicated on the basis of a memorandum of the main , and that he expressed readiness to deposit 5% of the amount linked to the alleged transactions. In these circumstances, the Court found it to grant bail subject to safeguards protecting the revenue interest.

Conclusion: Bail was granted to the applicant subject to deposit of 5% of the amount with the GST authorities, compliance with the specified conditions, furnishing of personal bond and solvent sureties, and observance of the conditions under Section 437(3) of the Code of Criminal Procedure, 1973.

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