Bail cancellation in GST investigation rejected where the accused cooperated, complied with conditions, and the inquiry was largely documentary.

Bail cancellation in a GST investigation was rejected where the allegations concerned input tax credit claimed through non-operational firms and the probe was largely documentary. The respondent had joined the investigation, complied with the trial court's conditions, and was not shown to have breached bail terms or failed to cooperate. With a substantial period having passed since bail was granted, the court found no basis to cancel bail and allowed the respondent to continue on the existing conditions.

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Issues: Whether the bail granted to the respondent in connection with the GST investigation ought to be cancelled.

Analysis: The allegations related to input tax credit claimed in respect of non-operational firms and the investigation was substantially documentary in nature. The respondent had joined the investigation, was not shown to have breached bail conditions or failed to cooperate, and had complied with the conditions imposed by the trial court, including deposit of part of the alleged amount. In these circumstances, and with a substantial period having elapsed since grant of bail, cancellation was not warranted.

Conclusion: The request for cancellation of bail was rejected and the respondent was permitted to continue on bail, subject to compliance with the trial court's conditions.

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