Anticipatory Bail Challenge Under CGST Act Reveals Procedural Safeguards Against Arbitrary Arrest of Taxpayers

The SC examined an anticipatory bail challenge under CGST Act, finding insufficient grounds for arrest. The court stayed the bail order and directed the department to provide a seven-day notice before potential arrest, highlighting procedural safeguards. The matter was adjourned for further hearing, with the court critically assessing the absence of imminent arrest risk.

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Issues involved: Challenge to the order granting anticipatory bail u/s 70 of the CGST Act based on absence of apprehension of arrest.

The petitioner challenged the order granting anticipatory bail to the respondent, arguing that there was no proposal to arrest the accused, making the bail illegal. The petitioner also highlighted another pending petition challenging the jurisdiction of the courts at Delhi. The respondent's counsel contended that the trial court correctly passed the order due to an imminent danger of arrest u/s 70 of the CGST Act. The court issued notice to the respondent and stayed the operation of the impugned order, requiring the department to provide a seven-day prior notice if arrest is deemed necessary.

Decision: The court stayed the operation of the order granting anticipatory bail, pending further examination, and directed the department to give a seven-day notice before any potential arrest, considering the absence of apprehension of arrest as stated by the petitioner's counsel. The matter was listed for further hearing on 15.09.2023.

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