Anticipatory bail in GST inquiry held premature when no arrest proposal existed and summons compliance was still pending.

Anticipatory bail under GST inquiry proceedings was treated as premature where summons had been issued under Section 70 for appearance and production of records, but no arrest had yet been proposed or approved. The court reasoned that, at an initial investigative stage, a speculative fear of arrest did not justify pre-arrest protection, especially where the applicant had not cooperated with the inquiry. It further noted that any necessary information about arrest approval could be sought if arrest was later contemplated, and that the statutory inquiry should not be obstructed. Pre-arrest protection was therefore refused.

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Issues: Whether an application for anticipatory bail was maintainable at the stage of summons and inquiry under the Central Goods and Services Tax Act, 2017, when no arrest had yet been proposed or approved.

Analysis: The application arose from summons issued under Section 70 of the Central Goods and Services Tax Act, 2017 for appearance and production of records during an ongoing inquiry. The respondent stated that the investigation was at an initial stage, that no proposal for arrest had been placed for approval, and that the applicant had not cooperated with the inquiry. The Court held that, in these circumstances, the apprehension of arrest was premature. It also noted that the applicant could seek necessary information regarding any approval if arrest was later contemplated, and that speculative fear about possible approval could not justify pre-arrest protection at that stage. The Court further observed that the statutory inquiry should not be hampered and that the applicant ought to respond to the summons as a law-abiding citizen.

Conclusion: The anticipatory bail request was held to be premature and was refused.

Final Conclusion: Pre-arrest protection was declined because the inquiry had only begun and no concrete basis for imminent arrest was shown.

Ratio Decidendi: Anticipatory bail may be declined as premature where the person summoned under GST law has not yet faced any concrete proposal of arrest and the inquiry remains at a nascent stage.

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