Facts of the Case

The petitioner filed a writ petition seeking protection against arrest in relation to summons issued under Section 70 of the CGST Act, 2017. The petitioner contended that the summons were not properly served and that he had already appeared through legal representation in proceedings initiated under Sections 174 and 175 IPC.

It was further submitted that the petitioner had been complying with directions and appearing before the concerned authority for investigation purposes. Despite this, apprehension of arrest prompted the filing of the present petition seeking a writ of mandamus to restrain authorities from arresting him. 

Issues Involved

  1. Whether a writ of mandamus can be issued restraining GST authorities from arresting a person summoned under CGST law.
  2. Whether apprehension of arrest at the stage of summons justifies judicial protection.
  3. Whether such petitions are maintainable in light of Supreme Court precedents on anticipatory protection under GST laws.

Petitioner’s Arguments

  • The summons were not duly served upon the petitioner.
  • The petitioner had cooperated with the investigation and appeared as required.
  • Reliance was placed on judicial precedent to argue that limited protection could be granted to enable participation in investigation without fear of arrest.
  • It was argued that even in similar cases, courts have granted interim protection for appearance before authorities.

Respondent’s Arguments

  • The petition is not maintainable in light of the Supreme Court judgment in State of Gujarat vs Choodamani Parmeshwaran Iyer.
  • Anticipatory bail provisions under Section 438 CrPC are not applicable in GST proceedings initiated under Section 69 CGST Act.
  • The petition essentially seeks anticipatory bail in the guise of a writ petition.
  • No arrest proceedings had been initiated yet; therefore, the petition is premature.
  • Issuing a writ would interfere with statutory powers of investigation.

Court’s Findings

  • The Court emphasized that Section 69 of the CGST Act contains inbuilt safeguards before arrest, including:
    • Requirement of “reason to believe” by the Commissioner
    • Mandatory communication of grounds of arrest
  • The Court relied upon the Supreme Court’s ruling clarifying that:
    • Anticipatory bail cannot be invoked at the stage of summons
    • Writ jurisdiction should be exercised sparingly and only in exceptional cases
  • A writ of mandamus cannot be issued to prevent authorities from exercising statutory powers
  • The Court noted that:
    • No arrest proceedings had been initiated
    • The apprehension of arrest was not substantiated

Court Order / Final Decision

The Delhi High Court held that:

  • No exceptional circumstances existed warranting interference
  • The petition was premature
  • No relief could be granted

The petition was dismissed.

Important Clarifications by the Court

  • Protection against arrest at the summons stage is not a matter of right
  • Writ jurisdiction cannot substitute anticipatory bail
  • GST law provides adequate procedural safeguards before arrest
  • Courts must avoid interfering with investigative functions unless exceptional grounds exist

Link to download the order - https://delhihighcourt.nic.in/app/showFileJudgment/DIS23082023CRLW23912023_170255.pdf  

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