Case Details: Radhika Agarwal Versus Union of India (2025) 27 Centax 425 (S.C.)
Judiciary and Counsel Details
- Sanjiv Khanna, CJI., M.M. Sundresh & Bela M. Trivedi, JJ.
Facts of the Case
The assessee was arrested under Section 104(1) of the Customs Act, 1962, and Sections 69 and 70 of the GST Acts for alleged tax evasion. The petitioner challenged the arrest as arbitrary, contending that under the Customs Act, arrest requires ‘reasons to believe’—a higher threshold than ‘mere suspicion’ under Section 41 of Cr.P.C., 1973. It was argued that in GST matters, arrest without adjudication of tax liability violates natural justice. The appeal questioned the procedural validity of the arrest before the Supreme Court.
Supreme Court Held
The Hon’ble Supreme Court held that the power of arrest must adhere to constitutional safeguards. Under Section 104(1) of the Customs Act, an arrest requires substantive material rather than mere suspicion. In GST matters, Article 246A affirms that the powers to summon, arrest, and prosecute are ancillary and incidental to the authority to levy and collect GST. Consequently, Sections 69 and 70 of the GST Acts are not ultra vires the Constitution.
List of Cases Cited
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