The Central Board of Indirect Taxes and Customs (CBIC) has issued Instruction No. 01/2025-GST, amending previous guidelines for arrest and bail in offences punishable under the CGST Act, 2017. This amendment follows recent judgments by the Hon'ble High Court of Delhi and the Hon'ble Supreme Court of India, emphasizing the distinction between "reasons for arrest" and "grounds of arrest."
The amendment requires that the grounds of arrest must:
- Be explained to the arrested individual.
- Be provided in writing as an annexure to the arrest memo.
- Include an acknowledgment from the arrested person upon receipt of the arrest memo.
This update is based on a Delhi High Court judgment in the case of Kshitij Ghildiyal v. Director General of GST Intelligence, which highlighted the importance of transparency in arrest procedures. The court referred to previous Supreme Court rulings, such as:
- Pankaj Bansal v. Union of India & Ors. (3rd October 2023)
- Prabir Purkayastha v. State (NCT of Delhi) (15th May 2024)
The Supreme Court clarified the distinction between "reasons for arrest," which are general in nature, and "grounds of arrest," which are specific and personal to the accused. The latter must include detailed facts that justify the arrest, enabling the accused to defend against custodial remand and seek bail effectively.
This amendment marks a significant step toward ensuring accountability and transparency in GST-related investigations. The instruction has been communicated to all Principal Chief Commissioners, Chief Commissioners, and the Directorate General of GST Intelligence (DGGI).
Official copy of the instruction has been attached
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