GST arrest before assessment upheld in principle, so interim protection against coercive action was vacated.

Interim protection against coercive action under GST could not continue on the theory that arrest is permissible only after assessment and demand. The Court relied on an earlier Division Bench view that prosecution for GST offences is not dependent on completion of assessment and that arrest need not await adjudication; it also noted the challenge had been dismissed by the Supreme Court. On that binding position, the Court held that if arrest itself is not barred before assessment, lesser coercive action cannot be prohibited either, and vacated the interim restraint.

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Issues: Whether interim protection against coercive action could continue on the premise that arrest under the goods and services tax law is permissible only after completion of assessment and raising of demand.

Analysis: The Court noted that a Division Bench had already held that prosecution for offences under the goods and services tax law is not dependent on completion of assessment and that the argument that arrest cannot precede adjudication or assessment was not acceptable. The earlier order had also declined relief against arrest. In view of that binding position and the dismissal of the challenge before the Supreme Court, the Court held that if arrest itself is not prohibited before assessment, lesser coercive action cannot be said to be prohibited.

Conclusion: The interim protection was vacated, and the petitioners were not entitled to continue the restraint against coercive action.

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