Pre-arrest bail under the CGST Act was refused, with surrender and conditional bail directed instead.

The Orissa HC held that, where a complaint alleged violation of Section 132 of the CGST Act carrying a maximum sentence of five years, pre-arrest bail was not warranted straightaway even though the petitioner was not named in the complaint. The Court instead required the petitioner to surrender before the jurisdictional court within the stipulated time and directed that bail be considered upon surrender on furnishing security and on such other conditions as the trial court found appropriate. The operative effect was denial of immediate anticipatory relief, with conditional post-surrender bail made available.

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Issues: Whether the petitioner was entitled to pre-arrest bail in connection with the alleged offence under the CGST Act, or whether bail should be granted only upon surrender subject to conditions.

Analysis: The complaint did not name the petitioner, but it disclosed allegations of violation of Section 132 of the Central Goods and Services Tax Act, 2017, for which the maximum sentence extended up to five years. In those circumstances, the Court found it appropriate not to grant pre-arrest bail straightaway. Instead, the Court directed the petitioner to surrender before the jurisdictional court within a stipulated time and, upon surrender, to be considered for release on bail on furnishing security and on such other suitable conditions as the trial court deemed proper.

Conclusion: Pre-arrest bail was not granted, but the petitioner was directed to surrender and was granted bail on compliance with the stated conditions.

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