A man who works for the Department of Defence has been accused of illegally manufacturing firearms in "a highly sophisticated operation".
However, a barrister has said that "what the police think is a smoking gun" is just "somebody who has an interest in guns".
Nathan Troy Keyte, 47, was granted bail in the ACT Magistrates Court on Thursday when his third bid for freedom was successful.
He has pleaded not guilty to charges including unauthorised manufacture of firearms, unauthorised possession of firearms, and importing prohibited goods without approval.
Co-accused Christopher Rodgers, who leases the neighbouring unit from Keyte in Mitchell, is also facing related charges.
The court heard Keyte's firearm licence had been cancelled due to a previous family violence conviction.
Court documents state that in September Australian Border Force stopped a suspicious package labelled "pipes" from China. The package was allegedly addressed to Keyte and contained two unfinished firearm barrels.
Police allege a reamer, engraving machines, titanium wire, and 3D printer supplies had been sent to his address.
On September 26, police searched two units in Mitchell, owned by Keyte, and seized rifle bolts, a gel blaster pistol, 32 suspected privately manufactured firearm components, miscellaneous gun parts, two metal gun casts, a book with gun manufacture images and other items.
The 47-year-old is also accused of importing a "Glock pistol-styled electric water gun".
On Thursday, prosecutor Madeleine Gallo opposed bail claiming the alleged gun manufacture was "a highly sophisticated operation".
"The offences that are alleged were mostly committed in private and secret, concealed from the outside world," she told the court.
Ms Gallo said Keyte's business, Canberra Ice, was "entangled in the manufacture of firearms".
Defence barrister Kieran Ginges told the court Keyte has multiple jobs which include working as an information technology consultant for the Department of Defence.
Mr Ginges said his client was also a "highly regarded" disc jockey, or DJ, who performs at nightclubs and private events.
"He's a very busy man," he said.
"It is not an offence to have an interest in firearms.
"This is a case where people are jumping at shadows ... jumping the gun perhaps."
Ms Gallo argued it was "not simply an interest in guns when you look at the totality of the evidence before you".
Special magistrate Marcus Hassall granted bail with conditions including locking an internal door between the two Mitchell units.
Keyte is set to face court again in February 2025.
