Punjab and Haryana High Court rules on GST arrest procedures

The Punjab and Haryana High Court has ruled that arrests made under Section 69 of the Central Goods and Services Tax Act, 2017, are illegal if the mandatory “reasons to believe” are recorded by an investigating officer rather than the Commissioner.

In the case of Sahil Chandna v. State of Haryana, Justice Shalini Singh Nagpal held that the Commissioner must independently examine credible material and record specific justifications for an arrest. The court noted that a mere statement in an authorization, even if accompanied by an inspector's report, does not satisfy statutory requirements. The ruling emphasized that personal liberty protections remain paramount regardless of the seriousness of allegations.

Additionally, the court found non-compliance with CBIC guidelines, noting that the arrest authorization lacked a valid Document Identification Number (DIN). Consequently, the court declared the petitioner's arrest, detention, and subsequent remand illegal.