Anticipatory bail granted despite serious economic offence allegations, emphasizing the principle of 'bail not jail' and the need for case-specific evaluation while ensuring compliance with investigation.

ORDER :

SHIVASHANKAR AMARANNAVAR, J.

1. This petition is filed by the petitioner/accused under Section 482 of BNSS praying to grant anticipatory bail in case of his arrest, pursuant to summons dated 10.10.2025 issued under Section 70 of the Central Goods and Services Act, 2017 (for short ‘CGST Act’) bearing CBIC-DIN- 202510DSS00000555A56.

2. Heard the learned Senior Counsel for the petitioner and learned counsel for respondent.

3. Learned Senior counsel for the petitioner would contend that the offence alleged is under Section 132 (1)(b)(c) of CGST Act and the maximum sentence that can be imposed for the offence alleged is imprisonment for five years and fine. Accused No.1 came to be arrested and charge sheet has been filed against him and as per the table in the charge sheet tax due is Rs.21,64,35,395/-. Petitioner is the Proprietor of A.R.Steel and he is stated to be due of Rs.24,89,630/-. Sri Nasir Ahmed who is alleged of tax due of Rs.18,57,88,319/- has been granted anticipatory bail. The petitioner alleged to have escaped at search on 10.09.2025 and he has been issued with summons under Section 69 dated 10.10.2025. Petitioner has been issued with summons under Section 70 of the CGST Act to appear before the Senior Intelligence Officer, DGGI, Bengaluru on 21.10.2025 and therefore, he apprehends his arrest. In the year 2024, the State Officers have adjudicated the matter and order of adjudication dated 30.08.2024 indicate that tax due is Rs.27,10,123/- and it has been paid by the petitioner. The order of adjudication dated 25.02.2025 indicate that the son of petitioner is tax due of Rs.11,90,301/-. GST return filed by the petitioner has been adjudicated and it has been finalized. The petitioner has been granted anticipatory bail in Crime No.162/2025. The petitioner participated in State adjudication. If the amount adjudicated is not paid after demand, then it amounts to offence. The offence is compoundable under Section 138 of the GST Act. The object of GST is not to arrest, but to collect tax. There is no bar under the Act for grant of anticipatory bail. Every document is uploaded online and it is available there. The GST authorities initiated investigation and it was pending with the State authorities. Under Section 6(2)(b) of the GST there is a bar for authorities to investigate when investigation is pending. The State GST Authority has handed over the documents to Central authorities. The files handed over by the State authorities to the Central authorities pertaining to A.R.Steel are four bundles which includes purchase sale files. Petitioner has paid the tax assessed by the State authorities. Accused No.1 has been granted anticipatory bail when the case was with the State authorities. Learned Senior Counsel relying on several decisions contended that the offence alleged against the petitioner is non-bailable offence and the punishment provided is imprisonment for five years and therefore, it is not a heinous offence and the petitioner is entitled for grant of anticipatory bail. On these grounds, he prayed to allow the petition.

4. Per contra, learned counsel for the respondent would contend that the offence alleged against the petitioner is cognizable and non-bailable offence and punishment provided is imprisonment for five years and fine. The search has been conducted at 13 locations. The petitioner and his son have created fake invoice. Rs.50 to 60 Crores of GST is due by the petitioner. At the time of raid the persons of petitioner’s side have manhandled the officers and FIR have been registered in Crime No.161/2025 and 162/2025. There is forgery of document by the petitioner. The petitioner has not paid the GST for transac