Bail is the Rule in GST S. 132 Offence Cases Except in Extraordinary Situations: Supreme Court [Read Order]

The Supreme Court has reiterated the principle that bail should be the norm, not the exception, in cases involving offences under Section 132 of the Central Goods and Services Tax (CGST) Act, 2017. In a recent ruling, the apex court expressed concern over the denial of bail to an accused despite the non-heinous nature of the alleged offence and the documentary nature of evidence.

The case involved a man who had been in custody for nearly seven months and was charged under Clauses (c), (f), and (h) of Section 132(1) of the CGST Act, which pertains to tax-related offences such as issuing fake invoices and wrongful input tax credit. These offences carry a maximum sentence of five years along with a fine. After being denied bail by the Magistrate Court and the Rajasthan High Court, the accused was compelled to approach the Supreme Court.

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The two-judge bench comprising Justice Abhay S Oka and Justice Ujjal Bhuyan observed that such denial of bail was unwarranted under the circumstances. “We are surprised to note that in a case like this, the appellant has been denied the benefit of bail at all levels, including the High Court. These are the cases where in normal course, before the Trial Courts, the accused should get bail unless there are some extraordinary circumstances,” the Court remarked.

The bench emphasized that the evidence in the case was purely documentary, and the accused had no prior criminal antecedents. Noting the absence of any special factors that could justify prolonged custody, the Court concluded that continued detention was unjustified.

Consequently, the Supreme Court set aside the Rajasthan High Court’s order and granted bail to the accused.

To Read the full text of the Order CLICK HERE

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