Regular bail in fictitious transaction and input tax credit case granted on prima facie assessment and custody factors.

Gujarat HC granted regular bail under Section 439 CrPC to an accused facing allegations of fictitious transactions and wrongful input tax credit claims, after assessing the nature of the accusations, the stage of investigation, the period of custody, and standard bail factors such as prima facie case, risk of absconding, and tampering with evidence. The Court noted that the applicant had remained in custody since 27.06.2024, the possible sentence was five years, and the relevant assets had already been attached. On that prima facie assessment, discretion was exercised in favour of release on bail subject to conditions.

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Issues: Whether the applicant was entitled to regular bail under Section 439 of the Code of Criminal Procedure, 1973 in view of the allegations of fictitious transactions and wrongful availing of input tax credit.

Analysis: The application was considered on the basis of the nature of the allegations, the stage of investigation, the period of custody, and the general bail factors of prima facie case, likelihood of the accused appearing at trial, and possibility of tampering with evidence. The Court noted the allegation of availing input tax credit on fictitious transactions, but also considered that the applicant had been in custody since 27.06.2024, the possible sentence was five years, and the relevant assets had already been attached. On that prima facie assessment, the Court found the matter fit for exercise of discretion in favour of release on bail, subject to conditions.

Conclusion: Regular bail was granted to the applicant on conditions.

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