Wrongful availment of ineligible input tax credit via fake invoices: regular bail granted subject to furnishing bail bonds.

Wrongful availment of ineligible input tax credit through fake invoices was treated as a documentary-evidence prosecution; because investigation was complete and offences were triable by Magistrate, this supported grant of regular bail. The court relied on clean criminal antecedents and precedents extending bail where prosecution rests on documents and maximum sentence is limited, and therefore ordered admission to regular bail subject to furnishing bail/surety bonds. The court cautioned that observations do not decide merits and prohibited any attempt to influence prosecution witnesses, leaving trial and factual findings to the trial court.

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Issues: Whether the petitioners accused under Sections 132(1)(b) and 132(1)(c) of the Central Goods and Services Tax Act, 2017 are entitled to regular bail.

Analysis: The petitions relate to allegations of wrongful availment of ineligible input tax credit through fake invoices and non-receipt of goods, with an asserted tax evasion of Rs. 23.12 crores. Considered factors include the documentary nature of the prosecution case, that parts of investigation are complete, the offences are triable by a Magistrate and carry a maximum sentence of five years, absence of confessional statements or direct evidence of the petitioners' involvement, period of custody already undergone, and precedent authorities allowing bail in similar circumstances. Conditions against influencing witnesses and furnishing bail/surety bonds are proposed.

Conclusion: Bail granted to the petitioners; they are to be admitted to regular bail subject to furnishing bail/surety bonds to the satisfaction of the trial Court/Duty Magistrate/Illaqa Magistrate and subject to conditions preventing threat or influence of prosecution witnesses.

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