TaxTMI 
TaxTMI 
2026 (9) TMI 75
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....Act 2017 which is punishable under clause (i), or (ii) of Sub-Section (1), or sub-Section (2) of the said Section. 4. On the basis of summon the or interrogation, the petitioner was arrested for the offence under the above sections for evasion of taxes in the complaint case filed by the CGST. It includes the allegation against the petitioner regarding issuance of invoices without the actual supply of goods under section 132 (1) (b), of the CGST Act, fraudulent availment of input tax credit under section 132 sub-clause (i) sub-clause (c), falsification of accounts and financial record under section 132 sub-clause (i) sub-clause (f), and abetment and operation of shell entities under section 132 sub-clause 1 (i). 5. The petitioner supplied the tax invoices to multiple beneficiaries firms without any actual physical movement or supply of goods, fraudulently availed input tax credit without actual receipt of goods or services, and without any corresponding e-way bills for this supply to the petitioner. 6. It is alleged that the petitioner engaged in falsification of accounts and financial records without any supporting evidence required for trading in commodities such as cemen....
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....d that the allegation regarding banking transaction between the petitioner and other individuals as an illicit network is completely misleading and without investigation. It has further been submitted that after the registration of the firm of the petitioner, the filing of the returns and other forms was made by the accountant and that the accountant is responsible for that purpose. The petitioner was not well conversant with the filing procedure and the accountant is responsible for all misdeeds by the firms. The prosecution needs investigation of IP address of that electronic device from which the return was filed during that period and without any such evidence, the leveling of allegation against the petitioner is not as per law and also against criminal jurisprudence. 13. Learned counsel for the petitioner has further submitted that after reading of section 69 of Central GST Act 2017, there must be a reason to believe that a person has committed an offence which is as under:- 69. Power to arrest. (1) Where the Commissioner has reasons to believe that a person has committed any offence specified in clause (a) or clause (b) or clause (c) or clause (d) of sub-....
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.... or in any way concerns himself in transporting, removing, depositing, keeping, concealing, supplying, or purchasing or in any other manner deals with, any goods which he knows or has reasons to believe are liable to confiscation under this Act or the rules made thereunder; (i) receives or is in any way concerned with the supply of, or in any other manner deals with any supply of services which he knows or has reasons to believe are in contravention of any provisions of this Act or the rules made thereunder; (j) tampers with or destroys any material evidence or documents; (k) fails to supply any information which he is required to supply under this Act or the rules made thereunder or (unless with a reasonable belief, the burden of proving which shall be upon him, that the information supplied by him is true) supplies false information; or (l) attempts to commit, or abets the commission of any of the offences mentioned in clauses (a) to (k) of this section, shall be punishable- (i) in cases where the amount of tax evaded or the amount of input tax credit wrongly availed or utilised or the amount of refund wrongly taken exceeds five hundre....
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....ll police officers be provided with a check list containing specified sub- clauses under Section 41(1)(b)(ii); 11.3. The police officer shall forward the check list duly filed and furnish the reasons and materials which necessitated the arrest, while forwarding/producing the accused before the Magistrate for further detention; 11.4. The Magistrate while authorising detention of the accused shall peruse the report furnished by the police officer in terms aforesaid and only after recording its satisfaction, the Magistrate will authorise detention; 11.5. The decision not to arrest an accused, be forwarded to the Magistrate within two weeks from the date of the institution of the case with a copy to the Magistrate which may be extended by the Superintendent of police of the district for the reasons to be recorded in writing; 11.6. Notice of appearance in terms of Section 41A of Cr.PC be served on the accused within two weeks from the date of institution of the case, which may be extended by the Superintendent of Police of the District for the reasons to be recorded in writing; 11.7. Failure to comply with the directions aforesaid shall apart....
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....the police officer; or (e) as unless such person is arrested, his presence in the Court whenever required cannot be ensured, and the police officer shall record while making such arrest, his reasons in writing: Provided that a police officer shall, in all cases where the arrest of a person is not required under the provisions of this sub-section, record the reasons in writing for not making the arrest; or (c) against whom credible information has been received that he has committed a cognizable offence punishable with imprisonment for a term which may extend to more than seven years whether with or without fine or with death sentence and the police officer has reason to believe on the basis of that information that such person has committed the said offence; or (d) who has been proclaimed as an offender either under this Sanhita or by order of the State Government; or (e) in whose possession anything is found which may reasonably be suspected to be stolen property and who may reasonably be suspected of having committed an offence with reference to such thing; or (f) who obstructs a police officer while in the execution of his du....
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....ect to such orders as may have been passed by a competent Court in this behalf, arrest him for the offence mentioned in the notice. (7) No arrest shall be made without prior permission of an officer not below the rank of Deputy Superintendent of Police in case of an offence which is punishable for imprisonment of less than three years and such person is infirm or is above sixty years of age." (emphasis supplied) 19. Learned counsel for the petitioner has also relied on some judgments of Hon'ble Apex Court as well as Hon'ble High Courts which are as follows:- (i) State of Punjab v. Davinder Pal Singh Bhullar (2011) 14 SCC 770. (ii) Radhika Agarwal v. Union of India WP (Cri) No. 336 of 2018 (SC). (iii) Andaman Timber Industries v. CCE MA No. 2034 of 2022. (iv) Shri Mukesh Agarwal v. UOI Bail Application No. 3440/2025 (Gauhati). (v) Sanket Mittal v. Central GST Department CRM-M- 44925 of 2025 ( P & H ). 20. Learned counsel for the petitioner has submitted that in this case, the charge sheet has been filed and keeping the petitioner behind the bars after the completion of investigation, will not serve any purpose and there is ....