A company director (petitioner) filed a petition challenging his arrest by the Central Goods and Service Tax (CGST) department. He argued his detention exceeded 24 hours, violating his legal rights.
Background of the Case
A company director filed a petition challenging his arrest by the CGST department. The petitioner argued that his detention exceeded 24 hours, violating his legal rights.
Key Points of Contention
- The petitioner's company had previously cooperated with a CGST investigation in 2021, resolving tax liabilities.
- In 2024, the petitioner was called into the CGST office and detained overnight before being arrested the next day.
- The CGST department justified the delay by claiming they needed time to download the petitioner's company's GST returns.
Petitioner's Arguments
The petitioner's lawyer presented several arguments:
- The CGST department's explanation for the delay lacked credibility considering their prior interaction with the company.
- Detaining the petitioner overnight was unnecessary, especially given his past cooperation.
- Arrest is a serious matter and should not be used routinely for alleged offenses.
Court's Observations
The court noted several factors that raised concerns:
- Inconsistency between the CGST department's explanations for the delay.
- The department already possessed all relevant company records from the 2021 investigation.
- The time claimed for downloading GST returns seemed excessive.
Court's Decision
Based on these observations, the court:
- Agreed with the petitioner that the detention likely exceeded 24 hours.
- Found the CGST department's justification unconvincing.
- Cited a Supreme Court precedent emphasizing protection from arbitrary use of arrest powers.
- Granted the petitioner interim bail (release before trial) on a surety bond.
Citation-2024 TAXONATION 951 (BOMBAY)
Topic-Mahesh Devchand Gala Versus Union of India
Date-10/05/2023
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