Regular bail in input tax credit fraud case upheld where custody was no longer necessary and liberty prevailed.

Regular bail was granted in a prosecution alleging fraudulent availment and use of input tax credit because continued custody was found unnecessary on the facts. The Court noted that the petitioner had been in custody for over two months, the main accused was already on bail, the petitioner's antecedents were clean, and no recovery was made from his premises. Applying the general rule favouring bail, the presumption of innocence, and the Article 21 right to speedy trial, the Court held that indefinite detention would serve no useful purpose and released the petitioner on bail and surety bonds.

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Issues: Whether the petitioner was entitled to regular bail in a prosecution alleging fraudulent availment and utilisation of input tax credit, and whether continued custody was warranted in the facts and circumstances of the case.

Analysis: The petitioner had remained in custody for more than two months, the main accused had already been enlarged on bail, the petitioner's antecedents were stated to be clean, and no recovery was shown from his premises. The order also proceeded on the basis that interrogation of other persons was still underway and that indefinite detention would serve no useful purpose. The Court applied the settled principles that the grant of bail is the general rule, that an accused enjoys the presumption of innocence until proved guilty, and that the right to speedy trial is an element of Article 21. In that background, continued incarceration was found to be unjustified.

Conclusion: Regular bail was granted to the petitioner.

Final Conclusion: The petition was allowed and the petitioner was released on regular bail, subject to furnishing bail and surety bonds before the competent court.

Ratio Decidendi: In the absence of a compelling necessity for further custodial detention, and where liberty is balanced against the presumption of innocence and the right to speedy trial, regular bail may be granted even in serious fiscal allegations.

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