Bail for alleged GST credit fraud warranted where investigation ended and no risk of absconding or evidence tampering emerged.

Bail in alleged fraudulent input tax credit availment, passing of credit, and wrongful export refunds was supported because the offences carried a maximum five-year sentence, were triable by a Magistrate, and investigation had concluded with the complaint filed. As no charge had been framed and trial completion was unlikely within a reasonable time, continued pre-conviction detention was not justified. Personal liberty, the presumption of innocence, and the right to a speedy trial favoured release, particularly as the applicant had no criminal antecedents and no material showed flight risk, repeat offending, witness intimidation, or tampering with documentary or electronic evidence. Release on bail was warranted subject to appropriate safeguards.

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Issues: Whether the applicant was entitled to bail for alleged fraudulent availment and passing of input tax credit and wrongful export refunds under the Central Goods and Services Tax regime.

Analysis: The alleged offences carry a maximum sentence of five years and are triable by a Magistrate. Investigation had concluded, the complaint had been filed, no charge had been framed, and the trial was unlikely to conclude within a reasonable time. The applicant had remained in custody since 13 February 2026 and had no criminal antecedents. Pre-conviction detention is not punitive; personal liberty, the presumption of innocence, and the right to a speedy trial require release unless exceptional circumstances justify continued custody. No material established a flight risk, likelihood of repetition of offences, intimidation of witnesses, or tampering with documentary and electronic evidence.

Conclusion: The applicant made out a case for release on bail upon appropriate safeguards.

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