Bail in alleged input tax credit fraud granted where stock verification, cooperation, and no tampering risk defeated custodial necessity.

Bail was granted in a prosecution alleging fraudulent availment of input tax credit under the CGST Act, as the Court found no custodial necessity on the record. The complaint relied on toll data and alleged non-movement of goods, but the contemporaneous panchanama showed physical stock verification, batch-wise matching of goods, and CCTV confirmation of vehicle arrival and unloading. The petitioner had cooperated with the investigation, the relevant documents were already with the authority, and there was no apparent scope for tampering with evidence. The Court also noted the limited stage of investigation, the maximum punishment prescribed, and the absence of any indicated flight risk.

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Issues: Whether the petitioner was entitled to bail in connection with the alleged fraudulent availment of input tax credit under the Central Goods and Services Tax Act, 2017.

Analysis: The complaint and arrest were founded on allegations of fraudulent input tax credit based on toll data analysis and alleged non-movement of goods, but the record also contained a contemporaneous panchanama showing physical stock verification, batch-wise matching of goods, and CCTV verification of vehicle arrival and unloading. The material on record showed that the petitioner had cooperated with the investigation, the relevant documents were already with the authority, and there was no apparent scope for tampering with evidence. The Court also considered the limited stage of the investigation, the maximum punishment prescribed for the alleged offence, and the absence of circumstances indicating flight risk or custodial necessity.

Conclusion: Bail was warranted and the petitioner was directed to be released on bail.

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