Madras High Court upheld bail in a GST case, emphasizing that grounds for arrest under Section 69 must be recorded in writing and communicated to the accused. Failure to comply renders the arrest suspect.
Madras HC: Written Grounds for GST Arrest Mandatory
In a significant ruling reaffirming procedural safeguards, the Madras High Court declined to cancel bail granted in a GST investigation, stressing that enforcement authorities must record in writing the grounds for arrest under Section 69 of the CGST Act and communicate them to the accused. The court held that compliance with this requirement is essential to prevent arbitrary detention.
The judgment underscored that procedural due process in tax enforcement actions is non-negotiable. By relying on the statutory mandate under Section 69(2), which requires that the reasons for arrest be 'recorded in writing', the court ruled that this acts as a check on investigative overreach.
"The failure to record grounds in writing at the time of arrest casts doubt on the legality of the action,"the Court observed.
This decision reinforces the rights of individuals facing GST scrutiny and mandates strict adherence to procedural law by revenue authorities. Practitioners should ensure clients are informed of the grounds of arrest immediately and challenge any non-compliance during bail or quash proceedings.
Citations
- Section 69, CGST Act
