2026-VIL-1138-ALH
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SGST High Court Cases

GST – Application for Anticipatory bail - Maintainability where only summons under Section 70 of the CGST Act, 2017 has been issued and no order of arrest under Section 69 has been passed - Applicant sought anticipatory bail in an investigation into alleged clandestine manufacture and clearance of goods without payment of GST - Respondent contending that the application is premature as only summons had been issued - Whether the application for anticipatory bail is premature merely because the Applicant has been summoned under Section 70 and no formal order of arrest exists - HELD - Section 69 deals with power of arrest, whereas Section 70 confers power to summon a person to give evidence or produce documents in an inquiry, and mere issuance of summons does not establish that the person is under arrest or that an order of arrest has been passed. However, the absence of an existing order of arrest is not an absolute bar to the exercise of jurisdiction for anticipatory bail where the applicant demonstrates a real, genuine and reasonable apprehension of arrest founded on the facts of the case - Searches had been conducted at several premises, machinery and material seized, the alleged revenue evasion quantified and the co-accused connected with the activity already arrested, so the apprehension cannot be characterised as fanciful or imaginary - The application cannot be rejected merely on the ground that no formal order of arrest has yet been placed on record - Grant of Anticipatory bail - Grant of extraordinary protection in alleged organised clandestine manufacture and clearance - Applicant, though not the principal person identified, was summoned on several occasions and allegedly did not cooperate, while the co-accused had been arrested - Whether the Applicant has made out a case for anticipatory bail - HELD - The existence of an apprehension of arrest is a condition for invoking the jurisdiction and is not by itself a sufficient ground for grant. The Court considers the nature and gravity of the allegations, the material collected, the role attributed, the stage and requirement of investigation, the possibility of influencing witnesses or tampering with evidence and the necessity of custodial interrogation - An undertaking to cooperate is a relevant circumstance but cannot foreclose the statutory authority to interrogate where necessary. The necessity of custodial interrogation, though not an end in itself, cannot at this stage be completely ruled out having regard to the nature of the allegations, the magnitude of the alleged evasion, the arrest of the co-accused and the alleged non-cooperation despite repeated summons. Personal liberty must be balanced against the legitimate requirement of investigation, and the Court is not required at this stage to record findings on guilt or innocence - The Applicant has failed to establish circumstances warranting anticipatory bail and the application is rejected.
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