Bail in GST prosecutions favours liberty where evidence is documentary, investigation is complete, and no trial-process risk exists.

Bail in GST prosecutions should ordinarily be granted where investigation is complete, the case rests primarily on documentary, electronic and statement evidence, and trial is unlikely to conclude within a reasonable time. The notes state that criminal prosecution remains independent of tax assessment proceedings, even where alleged evasion has not been assessed. For Magistrate-triable and compoundable offences with no criminal antecedents, continued pre-conviction detention should not become punitive unless concrete material shows a risk of absconding, witness intimidation, evidence tampering, repeat offending, or interference with justice. Presumption of innocence, personal liberty and the right to a speedy trial support release pending trial.

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Issues: Whether the applicant accused of offences under the Central Goods and Services Tax Act, 2017 was entitled to bail pending trial.

Analysis: The investigation was complete and the complaint had been filed, but charges had not been framed and the trial had not commenced. The alleged tax evasion had yet to be assessed under Sections 73 and 74, though criminal prosecution remained independent of assessment proceedings. The prosecution case was founded predominantly on documentary, electronic and statement evidence; the offences were triable by a Magistrate, carried a maximum sentence of five years, and were compoundable. The applicant had no criminal antecedents, had remained in custody for a substantial period, and no material established a risk of absconding, witness intimidation, evidence tampering, repetition of offences, or subversion of justice. Presumption of innocence, personal liberty, and the right to a speedy trial required that pre-conviction detention not become punitive where completion of trial was unlikely within a reasonable time.

Conclusion: The applicant was entitled to bail pending trial.

Ratio Decidendi: Bail should ordinarily be granted in a GST prosecution founded on documentary evidence where investigation is complete, trial is unlikely to conclude soon, the accused has no antecedents, and the prosecution shows no concrete risk to the trial process.

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