Anticipatory bail in GST refund fraud case granted where cooperation and asset disclosure made custodial interrogation unnecessary.

Anticipatory bail was granted in a case alleging fraudulent GST refund and related offences because custodial interrogation was not shown to be necessary at the pre-trial stage. The petitioner had disclosed assets by affidavit and undertaken to cooperate with the investigation, and the Court held that any recovery could proceed in accordance with law without pre-trial incarceration. It further observed that pre-conviction custody cannot be used as a substitute for punishment, and the material available did not justify denial of protection from arrest, subject to compliance with conditions and the investigating agency's right to seek cancellation for breach.

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Issues: Whether anticipatory bail should be granted in a case alleging fraudulent GST refund and related offences, and whether custodial interrogation was necessary at the pre-trial stage.

Analysis: The petitioner had already disclosed assets by affidavit and had undertaken to cooperate with the investigation. The decision emphasised that recovery, if any, could proceed in accordance with law and that custodial interrogation was not required merely for that purpose. It further held that pre-trial incarceration should not operate as a substitute for post-conviction punishment, and that the material available at the bail stage did not justify denial of anticipatory bail, especially when the Court was only assessing the necessity of custody and not adjudicating the merits of the prosecution.

Conclusion: Anticipatory bail was granted to the petitioner, subject to compliance with the imposed conditions.

Final Conclusion: The petition succeeded with conditional protection from arrest, while preserving the investigating agency's liberty to proceed in accordance with law and to seek cancellation upon non-compliance.

Ratio Decidendi: Custodial interrogation is unwarranted at the anticipatory bail stage where the accused has undertaken cooperation, disclosed assets, and the investigation can proceed without pre-trial incarceration.

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