SC sets aside protection from arrest granted to Future Group director in GST case
The bench however, clarified that GST authorities are obligated to communicate to an individual the reasons for arrest recorded under Section 69 of the Central Goods and Services Tax (CGST) Act
The Supreme Court of India has overturned a Bombay High Court ruling that granted Future Group non-executive director Sunil Biyani a one-week protection from arrest in a Goods and Services Tax (GST) investigation. The High Court had previously ruled that Biyani's anticipatory bail plea was premature, but had also provided him with limited protection should an arrest order be issued.
However, the Supreme Court has now found that the High Court lacked the authority to grant such protection after concluding that Biyani's plea was premature. The court emphasized that GST authorities must communicate to an individual the reasons for arrest under Section 69 of the CGST Act, either through traditional means or electronically.
The Union government had challenged the High Court's decision, arguing that Biyani's arrest could only be authorized after the Commissioner recorded the necessary "reasons to believe." The Supreme Court accepted the importance of communicating the arrest reasons, while maintaining that the protection from arrest is a separate matter from granting anticipatory bail.
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