Regular bail in GST fraud allegations granted where case rested on documents and pre-trial custody was unjustified.

Regular bail was granted in a GST-linked criminal case alleging wrongful input tax credit claims and use of a forged GST registration certificate to open a bank account. Recovery proceedings under Section 74 of the CGST Act were already underway and an appeal against the recovery order was pending. The prosecution under Section 132 of the CGST Act was based mainly on documentary material, the challan had been filed, the case was triable by a Magistrate, and the record did not show sufficient evidence that the bank account transactions were used to cheat any person. Prolonged pre-trial custody was therefore treated as unjustified.

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Issues: Whether the petitioner was entitled to regular bail in a case alleging wrongful availing of input tax credit and use of a forged GST registration certificate for opening a bank account.

Analysis: The petition arose from allegations under the GST regime and the related criminal FIR. The recovery proceedings under Section 74 of the Central Goods and Services Tax Act, 2017 were already initiated and an appeal against the recovery order was pending. As to prosecution, Section 132 of the Central Goods and Services Tax Act, 2017 was the relevant penal provision, and the matter was based largely on documentary material. The challan had been presented, the case was triable by a Magistrate, and no sufficient evidence had been collected to show that the bank account transactions themselves had been used to cheat any person. Prolonged pre-trial custody was not justified in the circumstances.

Conclusion: The petitioner was held entitled to regular bail.

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