CGST arrest power requires necessity to be recorded; cooperative conduct and weak custody grounds justified bail.

Arrest under the CGST Act requires recorded reasons to believe not only that an offence has been committed, but also why arrest is necessary. On the facts, the accused had cooperated with summons, supplied information during investigation, and made a deposit without admitting liability; custodial detention was not shown to be required for investigation. General assertions of possible tampering or non-cooperation were insufficient. Bail was therefore granted, and continued arrest and custody were held unwarranted on the material before the Court, subject to conditions ensuring cooperation and protection of evidence and witnesses.

---

---

Issues: Whether the petitioner's arrest and continued custody under the CGST regime were justified, and whether bail ought to be granted.

Analysis: The allegations concerned offences under the CGST Act carrying a maximum punishment of five years. The petitioner had responded to summons on several dates, supplied information during investigation, and had already deposited money without accepting liability. The power of arrest under section 69 of the CGST Act requires recorded reasons to believe not only that an offence has been committed, but also why arrest is necessary. In the facts, custodial detention was not shown to be for investigation, and general allegations of possible tampering or non-cooperation were not found sufficient to justify continued incarceration. The Court also considered the revenue-oriented nature of the statute and the principles governing arrest in offences punishable up to seven years or less.

Conclusion: The petitioner was entitled to release on bail, and the arrest and continued custody were not warranted on the material placed before the Court.

Final Conclusion: Relief was granted by directing release of the petitioner on compliance with conditions, while requiring cooperation with the ongoing investigation and safeguards against interference with evidence or witnesses.

Ratio Decidendi: For arrest under section 69 of the CGST Act, the authority must record not only that an offence is made out but also why arrest is necessary; where the accused has cooperated with investigation and custodial detention is not shown to be required, arrest and continued custody are not justified.

---