Grounds of arrest under section 69 GST Act must be conveyed at the time of arrest

Issue:

1. Whether an officer authorized to arrest under Section 69Goods and Services Tax Act, 2017 (GST Act) has an incumbent duty to supply grounds of arrest at the time of arrest?

Relevant Provisions:

2. Constitution of India:

• Part III Constitution of India guarantees fundamental rights to individuals, including rights related to arrest and detention.
• Article 22(1):  Provides that no person shall be detained in custody without being informed of the reasons for their arrest.

3. Goods and Services Tax Act, 2017 (GST Act):

• Section 69(2): States that an officer authorized to arrest shall inform the grounds of arrest to the person being arrested.

Analysis:

4. Constitutional Provisions vs. GST Act:

• Article 22(1) Constitution of India imposes a fundamental right on every individual arrested to be informed of the reasons for their arrest. This right ensures transparency in the arrest process and serves as a safeguard against unlawful detention.
• Article 22(3) Constitution of India, however, provides certain exceptions to this right, particularly in cases involving preventive detention, but these exceptions do not extend to the requirement of informing the grounds of arrest.

5. Section 69(2) GST Act:

• Section 69(2) GST Act aligns with the constitutional mandate under Article 22(1)Constitution of India. It plainly requires that the authorized officer inform the person being arrested of the grounds for its arrest at time of arrest. This statutory provision emphasizes constitutional safeguard by ensuring that the arrested person is made aware of the reasons for the action taken against them.

6. Rights of the Arrested Person:

• A person arrested under Section 69 GST Act has both a fundamental and statutory right to know the grounds of its arrest. This serves not only to clarify the reasons for the arrest but also allows the person the opportunity to seek legal counsel and prepare a defence.
• The primary purpose of informing the grounds of arrest is to uphold the principles of fairness and justice. It ensures that the arrested individual can understand the legal basis for its detention and can take appropriate steps to contest the arrest, if necessary.

Judicial Enunciation:

7. Supreme Court Precedents:

• The Hon’ble Supreme Court, in Pankaj Bansal Versus Union of India & Ors. - 2023 (10) TMI 175 - Supreme Court, meticulously considered the implications of Article 22(1)Constitution of India in the context of the Prevention of Money Laundering Act (PMLA) and emphasized the importance of conveying the grounds of arrest. The Court held that the grounds for arrest must be communicated in writing as a matter of course, with no exceptions. This verdict set a clear precedent for the requirement of written communication of arrest grounds.
• The Hon’ble Supreme Court, in Prabir Purkayastha Versus State (NCT of Delhi) - 2024 (5) TMI 1104 - Supreme Court reaffirmed the principles established in Pankaj Bansal(supra), highlighting that the right to be informed of the grounds of arrest is both constitutional and statutory.

8. Delhi High Courts Ruling:

• The Hon’ble Delhi High Court, in Kshitij Ghildiyal Versus Director General of GST Intelligence, Delhi - 2024 (12) TMI 1001 - DELHI HIGH COURT , followed the principles set out by the Hon’ble Supreme Court and held that the communication of grounds for arrest in writing is sacrosanct. The Court judged the arrest under Section 69 GST Act to be illegal because the grounds of arrest were not communicated in writing, as mandated by the law.

Instructions to Convey Grounds of Arrest:

9. The Central Board of Indirect Taxes and Customs (CBIC), considering the judicial pronouncements, issued Instruction No. 01/2025-GST dated 13th January 2025. This instruction directs that the grounds of arrest must be provided in writing at the time the arrest memo is served to the person arrested, ensuring compliance with both the constitutional and statutory requirements.

Conclusion:

10. It is clear, in view of the judicial enunciations and the legal provisions under Article 22(1)Constitution of India and section 69(2) GST Act, that the authorized officer has a mandatory duty to convey grounds of arrest in writing at the time of serving the arrest memo. This communication must be made in a clear and meaningful manner, ensuring that the arrested person fully understands the reasons for its detention. The failure to provide written grounds of arrest renders the arrest legally infirm, as reinforced by the Hon’ble Supreme Court and High Court verdicts.

It is, therefore, imperative that officers act in strict adherence to the law by informing the grounds of arrest in writing, thus, safeguarding the rights of individuals and ensuring procedural fairness.