Bail in alleged fraudulent input tax credit case granted where no exceptional grounds justified continued detention.

Accused persons facing charges under the CGST Act for alleged fraudulent input tax credit were granted bail under the Bharatiya Nagarik Suraksha Sanhita because the offences were triable by a Magistrate and carried a maximum punishment of five years. The Court found that the petitioners had been in custody for about four months, had no similar criminal antecedents, and that no extraordinary circumstance or adverse material justified continued detention. Applying the ordinary rule that bail should follow in such matters absent exceptional grounds, the Court admitted them to bail on terms to be fixed by the trial court.

---

---

Issues: Whether the petitioners, accused of offences under Section 132(1)(b), (c), (f) and (i) of the Central Goods and Services Tax Act, 2017, were entitled to bail under Section 483 of the Bharatiya Nagarik Suraksha Sanhita.

Analysis: The allegations related to fraudulent availment of input tax credit and the offences were triable by a Magistrate with a maximum punishment of five years. The petitioners had remained in custody for about four months, had no similar criminal antecedents, and no material was produced to show any extraordinary circumstance warranting continued detention. The Court applied the principle that, in the ordinary course, accused persons in such matters should be enlarged on bail unless exceptional grounds exist, and also noted the absence of any adverse material distinguishing the case from that approach.

Conclusion: The petitioners were held entitled to bail and were admitted to bail on terms to be fixed by the trial court.

Final Conclusion: The bail applications were allowed and the proceedings were finally disposed of by granting release on bail subject to conditions.

---