2026 (2) TMI 1262 - HC - GST

Bail in GST offences granted where investigation is complete and evidence is documentary, subject to specified conditions.

Applications for regular bail in prosecutions under Section 132 CGST were granted where the court applied settled bail principles prioritising presumption ... Grant of regular bail - economic offences and bail jurisprudence - prima facie/reasonable ground to believe - documentary and electronic evidence not mandating custody - compoundability of offences u/s 132 - HELD THAT:- The alleged offences are punishable with maximum punishment up to 05 years and also keeping in view that in such circumstances, the further detention of the petitioners may not at all be justified since in case of this nature, the evidence to be rendered by the respondent would essentially be documentary and electronic, which will be through official witnesses, due to which, there cannot be any apprehension of tampering, intimidating or influencing the witnesses and further as it appears justified to strike a fine balance between the need for further detention of the petitioner when no custodial interrogation has been claimed at all by the department, this Court considers that the petitioners are entitled to be released on bail but subject to certain conditions. As a result, the petitions moved by both the petitioners are hereby allowed and they are ordered to be released on regular bail on their furnishing personal bonds with two sureties in the like amount each to the satisfaction of the Court concerned/Duty Magistrate. It is made clear that the observations made herein above are only for the purpose of deciding the present petitions and the same shall not be construed as an expression of opinion by this Court on the merits of the case. Issues: Whether the petitioners accused of offences under Section 132 of the Central Goods and Services Tax Act, 2017 are entitled to regular bail pending trial.Analysis: The Court examined statutory provisions including Section 132 of the Central Goods and Services Tax Act, 2017 (offences and punishment) and noted that the offences attract imprisonment up to five years and are compoundable under Section 138. The Court applied settled bail principles emphasizing presumption of innocence and that grant of bail is the norm, considering factors such as prima facie evidence, nature and gravity of charge, severity of punishment, risk of absconding, likelihood of tampering with witnesses, and whether custodial interrogation is necessary. The Court found that the allegations relate primarily to documentary and electronic evidence collected during investigation, that investigation is complete and complaint/chargesheet has been filed, and that no custodial interrogation by the prosecution was indicated. The Court observed that the prosecution evidence would largely be documentary and official witnesses, reducing the likelihood of tampering, intimidation, or need for continued physical custody.Conclusion: The petitions are allowed and the petitioners are granted regular bail subject to conditions including furnishing personal bonds with two sureties, deposit of passports, cooperation in trial, non-tampering with prosecution evidence, restraint on disposing relevant property, providing Aadhaar and contact details, and abstention from criminal activity. The order is in favour of the petitioners (assessee).