GST arrest safeguards require recorded necessity to arrest; interim bail was granted where compliance was not on record.

Arrest under Section 69 of the CGST Act must be supported by a recorded necessity to arrest and compliance with mandatory arrest safeguards. Where the arrest memo and remand materials did not clearly show such satisfaction, and custodial interrogation was not shown to be required, the Court found a strong prima facie case for interim protection. Interim bail was therefore granted on conditions.

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Issues: Whether interim bail should be granted in a GST arrest matter where the arrest memo and remand materials did not disclose compliance with the requirement of necessity to arrest and the procedural safeguards governing arrest.

Analysis: The arrest power under Section 69 of the Central Goods and Services Tax Act, 2017 is discretionary and must be exercised consistently with the mandatory safeguards governing arrest, including the requirement that the record disclose the necessity to arrest. On the materials placed, the arrest memo and remand request did not clearly reflect such satisfaction, and the Court also noted that the investigating agency had already interrogated the petitioner and had not sought further custodial interrogation. In these circumstances, the challenge to the arrest and the complaint of non-compliance with arrest safeguards raised a strong prima facie case for interim protection.

Conclusion: Interim bail was granted to the petitioner on specified conditions.

Ratio Decidendi: Arrest under the GST regime must be supported by a recorded necessity to arrest and compliance with the mandatory safeguards governing arrest; where such compliance is not on the record and custodial interrogation is not shown to be required, interim bail may be warranted.

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