2025 (8) TMI 70 - HC - GST

Bail granted under Section 483 B.N.S.S. for accused in tax credit and invoice fraud case with conditions

The HC granted bail to the petitioner accused of irregular input tax credit and issuing goods-less invoices without actual supply. Considering the case is ... Seeking grant of bail - availment of irregular input tax credit - issuance of goods-less invoices, without any underlying supply of goods - HELD THAT:- On consideration of the rival submissions and material available on record and deliberating all the facts and circumstances of the case especially the fact that the case is exclusively triable by judicial Magistrate, offence being compundable upto the quantum of amount of Rupees five crorer out of which Rs. 1,37,27,000/- has been deposited to the concerned authority and in absence of any criminal antecedents and the fact that petitioner is in judicial custody since 2.5.2025 and complaint/charge-sheet has been filed but without expressing any opinion on the merits/demerits of the case, it is inclined to grant benefit of bail to the petitioner. It is ordered that the petitioner-Gopal Rawat shall be released on bail on his furnishing a personal bond in the sum of Rs. 1,00,000/- with two sureties of Rs. 50,000/- each to the satisfaction of the learned trial court for his appearance before that Court on all the dates till conclusion of the trial with a further condition that he shall deposit his passport, if any, with the trial court and not travel aboard without prior permission of the trial court. The bail application under Section 483 B.N.S.S. is allowed. ISSUES: Whether the petitioner is entitled to bail under Section 483 of BNSS for the offence under Section 132(1) of the CGST Act, 2017 involving issuance of goods-less invoices and input tax credit fraud.Whether the nature of the offence, amount involved, and trial court jurisdiction affect the grant of bail.Whether the petitioner's custodial period and compliance with conditions justify bail despite the economic offence allegations.The applicability of precedent judgments concerning bail in economic offence cases under GST laws. RULINGS / HOLDINGS: The court held that the offence under Section 132(1) of the CGST Act, 2017 is bailable and compundable up to Rupees five crore, with maximum punishment of five years and exclusively triable by the Judicial Magistrate.The petitioner is entitled to bail considering that Rs. 1,37,27,000/- of the alleged input tax credit has been deposited, the petitioner has no criminal antecedents, and has been in custody since 2.5.2025.The court relied on the Supreme Court's observation in Ratnambar Kaushik that 'the evidence to be tendered ... would essentially be documentary and electronic' and that 'there can be no apprehension of tampering, intimidating or influencing,' favoring grant of bail.The bail was granted subject to furnishing personal bond and sureties, deposit of passport, and restrictions on foreign travel to ensure trial participation. RATIONALE: The court applied the legal framework under Section 132(1) of the CGST Act, 2017, and Section 483 of BNSS for bail applications.Precedents including the Supreme Court's decision in Ratnambar Kaushik were followed, emphasizing that bail may be granted when the evidence is documentary/electronic and the accused is not likely to tamper with evidence.The court noted the offence is triable exclusively by a Judicial Magistrate and compounding is permissible up to five crore rupees, influencing the bail decision.No dissenting or concurring opinions were recorded; the judgment reflects a conventional application of established principles balancing economic offence gravity with the right to bail.