GST Update

Desk of CA. Praveen Sharma – 947 Series (CAPS)

Allahabad High Court in the case of Jai Kumar Aggarwal

The petitioner filed a habeas corpus petition before the Allahabad High Court challenging his arrest and remand during GST investigation proceedings. He alleged that his detention was illegal and that the authorities did not follow the mandatory procedural safeguards required under law.

The petitioner argued that at the time of arrest, he was not provided with the written grounds of arrest and that the reasons justifying the arrest were not properly communicated. According to him, this violated constitutional protections and the legal safeguards laid down by the courts.

He relied on various Supreme Court judgments and departmental guidelines which state that arrest should not be made mechanically. It must be based on credible evidence, recorded satisfaction of the competent authority, and proper communication of the grounds of arrest to the person concerned.

The department, however, argued that the Commissioner had recorded valid reasons on file before authorising the arrest. They contended that internal records showing satisfaction for arrest are not required to be furnished to the accused.

The High Court observed that while the recording of reasons justifying arrest is mandatory, the internal satisfaction recorded by the department is not required to be supplied to the accused. However, the written grounds of arrest must be provided to the person arrested.

After examining the remand record, the Court found serious procedural lapses regarding the timely service of written grounds of arrest and compliance with departmental instructions.

The Court held that offences punishable up to seven years must follow the principles laid down by the Supreme Court regarding arrest safeguards. As a result, the Court set aside the remand order, allowed the writ petition, and directed the immediate release of the petitioner while giving liberty to the department to proceed again in accordance with law.

LINK: CA. Praveen Sharma on Linkedin

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CAPS