Serious economic offence in fake invoice ITC fraud led to denial of bail at the initial stage.

Bail was declined in a GST fraud matter alleging fraudulent availment and passing on of Input Tax Credit through fake invoices and non-existent suppliers. The Court treated the allegations as a serious economic offence, noting search material, statement-based evidence, the scale of the alleged revenue loss, and the risk that release could lead to tampering with evidence or influencing witnesses. Applying settled bail principles for serious economic offences, it found no sufficient ground for enlargement on bail at that stage.

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Issues: Whether the applicant was entitled to bail in a case alleging fraudulent availment and passing on of Input Tax Credit through fake invoices and non-existent suppliers.

Analysis: The allegation was that the applicant, as proprietor of the concern, had availed and passed on fraudulent Input Tax Credit on the basis of invoices without actual supply of goods. The record referred to search proceedings, statement-based material, and the scale of the alleged tax evasion. The Court treated the matter as an economic offence involving a substantial monetary loss to the revenue. It considered the seriousness of the allegations, the nature of the material collected, and the prosecution apprehension that release on bail could lead to tampering with evidence and influence over witnesses. Applying the settled bail principles for serious economic offences, the Court found no sufficient ground for enlargement on bail at that stage.

Conclusion: Bail was declined.

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