Regular bail in GST forgery allegations declined where forged invoices and ongoing investigation risked prejudice to inquiry.

In a GST economic offence involving alleged forged invoices, paper transactions and wrongful input tax credit, the HC treated the seriousness of the fiscal allegations and the ongoing investigation as decisive against release on regular bail. The Court held that the prima facie claim of substantial revenue loss and the reasonable apprehension of prejudice to the investigation outweighed long pre-trial custody on the facts. Regular bail was therefore declined.

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Issues: Whether regular bail should be granted in a GST economic offence involving allegations of forged invoices, wrongful availment of input tax credit, and an ongoing investigation.

Analysis: The allegations concerned creation of paper transactions through partnership firms, issuance of invoices without actual supply of goods, and availing of input tax credit causing substantial alleged loss to the revenue. The investigation was stated to be continuing, and the Court treated the nature of the accusations, the seriousness of the economic offence, and the possibility of interference with the investigation as relevant factors against release on bail. Long pre-trial custody, by itself, was held insufficient to outweigh those considerations in the facts of the case.

Conclusion: Regular bail was declined.

Final Conclusion: The application for regular bail was not found fit for grant in view of the serious fiscal allegations and the continuing investigation.

Ratio Decidendi: In a serious economic offence involving alleged forged invoices and ongoing investigation, bail may be refused where the allegations prima facie disclose substantial revenue loss and there is a reasonable apprehension of prejudice to the investigation.

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