Bail in GST fraud prosecution granted where custody was unnecessary and arrest grounds were disclosed in the record.

Bail was granted in a GST prosecution alleging wrongful availment of input tax credit and arrest under the statutory arrest power. The Court noted that substantial security for the demand existed through reversal of credit and bank transfers, and that further custodial interrogation was not necessary for the investigation. It also recorded that the arrest memo and authorisation disclosed the grounds of arrest, so the arrest could not be treated as illegal on the facts placed before it. Release was ordered on bond and sureties, subject to cooperation, non-interference with evidence, appearance when called, deposit of passport, and restrictions on foreign travel.

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Issues: Whether the accused was entitled to bail in a GST prosecution involving alleged fraudulent input tax credit and arrest under the statutory arrest power.

Analysis: The application arose from allegations of wrongful availment of input tax credit and the need claimed by the prosecution for custodial interrogation. The record noted that the amount reflected in the demand was substantially secured by reversal of credit and bank transfers, the accused was a , and further custody was not found necessary for the ongoing investigation. The Court also recorded that the arrest memo and authorisation disclosed the grounds of arrest, and therefore the arrest could not be treated as illegal on the facts placed before it.

Conclusion: Bail was granted to the accused on execution of a bond and sureties, subject to conditions for co-operation, non-interference with evidence, appearance when called, deposit of passport, and restrictions on foreign travel.

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