HC Granted Bail to Accused of ITC Fraud as There Were no Reasons Recorded on Records on ‘Necessity to Arrest’
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- Last Updated on 9 August, 2023
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Case Details: Ashish Kakkar v. Union of India - [2023] 153 taxmann.com 235 (Allahabad)
Judiciary and Counsel Details
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- Pritinker Diwaker, CJ. & Ashutosh Srivastava, J.
- Raghav Dev Garg for the Petitioner.
- A.S.G.I., Dhananjay Awasthi & Gopal Verma for the Respondent.
Facts of the Case
In the present case, the petitioner was arrested for floating bogus firms and a formal arrest memo was served upon the petitioner by the Investigating Officer authorized by the Principal Commissioner. It filed application for interim bail on ground that no satisfaction was recorded by competent authority on ‘necessity to arrest’ as required under Section 41(1) of Cr. PC Act.
High Court Held
The Honorable High Court noted that under Section 69(1) of CGST Act, 2017, a discretion has been given to competent officer to authorize arrest for committing offences punishable under Section 132. The use of word ‘may’ in Section 69 shows that for exercising this discretion, reasons on ‘necessity to arrest’ must be recorded.
However, in the instant case, no such satisfaction regarding necessity to arrest has been recorded and there was nothing on record to show any past conduct of petitioner or that he had obstructed investigations to warrant arrest. Further, after arrest, the department had sought judicial custody meaning thereby that interrogation of petitioner was complete.
Therefore, the Court held that bail should be granted to petitioner on furnishing a personal bond in sum of Rs.1.00 crore with two sureties each of same amount and also subject to other conditions.
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