Regular bail in GST input tax credit case granted on prima facie assessment and custody period considerations

Regular bail was granted in a GST prosecution alleging ineligible input tax credit on purchases from alleged non-existing entities. The HC considered the nature of the accusation, the punishment prescribed, and the period of custody already undergone, and found the material sufficient only for a prima facie assessment at the bail stage without entering a detailed appraisal of evidence. Applying the governing principles for bail in criminal proceedings, the applicant was ordered to be released on conditions.

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Issues: Whether the applicant was entitled to regular bail in a prosecution alleging availment of ineligible input tax credit under the GST law.

Analysis: The application was considered on the nature of the , the punishment prescribed for the alleged offence, and the period of custody already undergone. The allegations were that ineligible input tax credit had been availed on purchases from entities said to be non-existing. Without entering into a detailed appraisal of the evidence, the material was found sufficient only for a prima facie assessment at the bail stage. The decision also noted the governing principles applicable to bail in criminal proceedings.

Conclusion: The applicant was held entitled to regular bail and was ordered to be released on conditions.

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