The Supreme Court of India has dismissed a petition filed by the Directorate General of Goods and Service Tax Intelligence ( DGGSTI ) challenging the bail granted to a businessman, accused of claiming fraudulent Input Tax Credit ( ITC ) worth Rs. 22 crore.
The accused was arrested for allegedly availing ITC based on fake invoices, a serious offence under the Central Goods and Services Tax Act, 2017 ( GST Act ). The High Court had, however, granted him bail considering that the investigation was unlikely to be completed soon as all necessary documents had already been seized by the authorities.
The DGGSTI challenged the Gujarat High Court order in the Supreme Court. However, a three-judge bench comprising Justices Sanjiv Khanna, Sanjay Karol, and Sanjay Kumar decided not to interfere with the High Court judgement.
The Supreme Court stated that since the investigation appeared to be nearing completion and Patel’s presence was not essential anymore, upholding the bail order was justified.
The Supreme Court’s decision highlights the importance of considering the stage of investigation while deciding bail applications in economic offense cases.
The ruling reaffirms that courts have the authority to grant bail if the investigation does not require the presence of the accused and appears close to completion.
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