CGST arrest requires recorded reasons and communicated grounds, while bail cancellation needs proof the bail order was illegal or perverse.

Arrest under the CGST Act must be supported by written reasons to believe recorded by the Commissioner or authorised officer, and those reasons must show application of mind rather than a generic or predetermined basis. The grounds of arrest communicated at the time of arrest must also disclose the basis for detention; a remand report meant for the Magistrate does not replace that communication to the accused. In the bail context, cancellation is not warranted unless the bail order itself is shown to be illegal or perverse. On these principles, the request to cancel bail was rejected and the bail order was left undisturbed.

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Issues: Whether the bail granted to the accused under the Central Goods and Services Tax Act, 2017 was liable to be cancelled for want of recorded reasons to believe and non-communication of the grounds of arrest.

Analysis: The complaint arose from allegations of suppression of taxable supplies and non-issuance of invoices, followed by search, arrest, and remand. The decision to arrest under Section 69(2) of the Central Goods and Services Tax Act, 2017 must rest on written reasons to believe recorded by the Commissioner or authorised officer. Those reasons cannot be generic or predetermined and must show application of mind to the facts of the case. The grounds of arrest furnished at the time of arrest must reflect the basis for detention. A remand report is meant for the satisfaction of the Magistrate and does not substitute communication of the reasons to the accused. The order granting bail was not shown to be contrary to the statutory scheme so as to warrant cancellation.

Conclusion: The request to cancel the bail was rejected and the bail order was left undisturbed.

Final Conclusion: The criminal original petition did not succeed, and the respondent retained the benefit of bail.

Ratio Decidendi: Arrest under the CGST regime must be supported by recorded reasons to believe and proper communication of grounds of arrest, but cancellation of bail is not justified unless the bail order itself is shown to be illegal or perverse.

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