Anticipatory Bail Maintainable for CGST Offences: Delhi HC Allows Petitioner to Seek Relief u/s 438 of CrPC [Read Order]
The Court relied upon the legal position clarified by the SC in Radhika Agarwal v. Union of India and Others, affirming the maintainability of anticipatory bail petitions in GST-related matters
Delhi HC
Delhi HC
The Delhi High Court held that persons summoned in connection with alleged offences under the Central Goods and Services Tax Act, 2017 are entitled to apply for anticipatory bail under Section 438 of the Code of Criminal Procedure, 1973. The Court extended interim protection from arrest to allow the petitioners to seek appropriate relief before the competent court.
The petition was filed by Sumit Jain and another challenging the coercive action threatened by the Directorate General of GST Intelligence in relation to summons issued on 17.07.2023, during what was alleged to be a “fishing and roving” enquiry under the Central Goods and Services Tax Act, 2017. When the petition was moved, interim protection had been granted earlier on 06.09.2023.
Represented by Jitin Singhal and Jatin Kumar Gaur, the petitioners argued that the enquiry had progressed beyond the investigative stage as a show cause notice had already been issued. However, the petitioners might face imminent arrest despite the matter transitioning into a civil adjudication process.
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The bench of Justice Sanjeev Narula noted that although reliance was originally placed upon the Supreme Court ruling in State of Gujarat v. Choodamani Parmeshwaran Iyer (2023). Nonetheless, the legal position now stands clarified in Radhika Agarwal v. Union of India (2025), wherein it was held that persons summoned in matters involving offences under the Central Goods and Services Tax Act, 2017 can invoke the remedy under Section 438 of the Code of Criminal Procedure, 1973.
Accordingly, the Court disposed of the writ petition with a direction that the existing interim protection from arrest shall continue for two weeks to enable the petitioners to file a bail application before the appropriate forum. It was further clarified that such bail application shall be considered on its own merits, uninfluenced by the interim protection granted or by any observation in this order.
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