Credible evidence threshold for arrest: lack of material showing large ITC evasion led to bail with bond conditions.
The court evaluated whether there was credible material to form a reasonable belief of wrongful availing of input tax credit above the statutory threshold, finding no explanation for the department's aggregate figure and no proof that the supplier had filed returns for the period. Defects in the panchnama and lack of indicators that the accused was a fly-by-night operator undermined justification for arrest. Considering the accused's deposit and absence of immediate flight risk, the court directed release on bail subject to bond, surety, non-departure conditions and surrender of passport. (AI Summary)