Bail in alleged GST input tax credit fraud was allowed after completion of investigation and filing of complaint.

Bail was granted in a prosecution under Section 132 of the CGST Act involving alleged input tax credit fraud through shell companies because investigation was complete, the complaint had been filed, the offences were triable by a Magistrate and carried a maximum sentence of five years. The court also noted that the case rested largely on documentary evidence, the applicant had no criminal antecedents, and trial was likely to take time. On that basis, the settled approach favouring bail pending trial on conditions was applied, subject to personal bond, sureties and compliance terms.

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Issues: Whether bail should be granted to an facing prosecution for alleged offences under Section 132 of the Central Goods and Services Tax Act, 2017.

Analysis: The allegations concerned availing and passing of input tax credit through fictitious shell companies. The investigation had already been completed and the complaint filed. The offences were triable by a Magistrate and carried a maximum sentence of five years. The case was substantially based on documentary evidence, the applicant had no criminal antecedents, and the likely duration of trial was considered significant. Reliance was placed on the settled approach that, in such cases, bail may ordinarily be granted pending trial on appropriate conditions.

Conclusion: Bail was granted to the applicant on furnishing personal bond and sureties and subject to conditions.

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