2026 (3) TMI 2 - HC - GST

Bail at pre-charge stage granted where case is documentary, triable by a Magistrate, and accused endured extended custody.

Petitioner accused under CGST/IGST provisions sought regular bail at pre-charge stage for alleged wrongful input tax credit via bogus invoices; court ... Regular bail - Pre-charge stage - Custodial period as a factor for bail - Case triable by a Magistrate - Documentary evidence-based prosecution - Bail ordinarily to be granted unless extraordinary circumstances - Prohibition on influencing or threatening prosecution witnesses - HELD THAT:- The Hon’ble Supreme Court granted bail to the accused in the matter of ‘Vineet Jain Vs. Union of India’ [2025 (5) TMI 925 - SC ORDER] noticing that the accused therein had undergone an actual custody of 7 months and reflected no criminal antecedents. The Court also took note of the fact that the case of the prosecution was based on documentary evidence and was triable by the Court of a Judicial Magistrate. Considering that the maximum punishment prescribed under Section 132 (1) of the CGST Act is 5 years with fine, the Court observed that the accused should get bail unless there are some extra ordinary circumstances. Thus, the period of actual custody undergone by the petitioner, nature of allegations against the petitioner and noticing that the complaint in question is triable by the Court of a Magistrate, deem it fit to allow the instant petition. Accordingly, the instant petition is allowed and the petitioner is ordered to be admitted to regular bail subject to his furnishing bail/surety bonds to the satisfaction of the trial Court/Duty Magistrate/Illaqa Magistrate concerned. It is made clear that the petitioner shall not extend any threat and shall not influence any prosecution witness in any manner directly or indirectly. Issues: Whether the petitioner, accused under Sections 132(1)(a), 132(1)(c) read with Section 132(1) of the Central Goods and Services Tax Act, 2017 and Section 20 of the Integrated Goods and Services Tax Act, 2017, is entitled to regular bail while the matter is at the pre-charge stage and triable by a Magistrate.Analysis: The petitioner is alleged to have availed wrongful input tax credit by producing bogus invoices. The matter remains at the pre-charge stage and is triable by a Judicial Magistrate. The petitioner has undergone actual custody exceeding five months. The Court relied on comparative judicial pronouncements addressing bail where the accused had undergone significant custody, where the prosecution case was documentary in nature and triable by a Magistrate, and noting the maximum punishment under Section 132(1) of the CGST Act. The respondent did not dispute the custodial period or the pre-charge status. The Court balanced the custodial period, nature of allegations, stage of the proceedings and relevant precedents in exercising discretion to grant bail.Conclusion: The petition for regular bail is allowed and the petitioner is 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 prohibiting threat or influencing of prosecution witnesses.