Regular bail in GST fake-input-tax-credit prosecution granted where investigation was complete and trial was likely to be protracted.

In a GST fake-input-tax-credit prosecution, the Punjab and Haryana HC considered whether completion of investigation, filing of complaint and framing of charges, together with about six months of custody, justified regular bail. The Court noted that the allegations of wrongful availment and passing on of ineligible input tax credit through fictitious firms, including the petitioner's role, alleged monetary benefit and digital trail, involved disputed factual matters for trial. As the case rested substantially on documentary and electronic evidence and the trial was likely to take time, continued custody was held unnecessary. Bail was granted, leaving the merits of the allegations for determination at trial.

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Issues: Whether the petitioner was entitled to regular bail in a GST fake-input-tax-credit prosecution, and whether the completion of investigation together with the period of custody justified release on bail.

Analysis: The petition arose from allegations of wrongful availment and passing on of ineligible input tax credit through fictitious firms under the CGST and IGST regime. The investigation had already culminated in filing of complaint and framing of charges, and the Court noted that the rival factual assertions on the petitioner's role, monetary benefit, and the alleged digital trail were matters for trial. The petitioner had undergone about six months of incarceration, the case was based substantially on documentary and electronic material, and the trial was likely to take time.

Conclusion: The petitioner was found entitled to bail.

Final Conclusion: The petition was allowed and the petitioner was ordered to be released on bail, with the merits of the allegations left for determination at trial.

Ratio Decidendi: In a case resting primarily on documentary and electronic evidence, where investigation is complete and trial is likely to be protracted, continued custody may not be justified and bail can be granted despite serious fiscal allegations.

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