Provisions of Code of Criminal Procedure Would Also Apply for Search, Seizure, and Arrest Under GST Act and Customs Act | SC

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Provisions of Code of Criminal Procedure

Case Details: Radhika Agarwal vs. Union of India - [2025] 171 taxmann.com 832 (SC)

Judiciary and Counsel Details

  • Sanjiv Khanna, CJI., M.M. Sundresh & Bela M. Trivedi, JJ.

Facts of the Case

The assessee was taken into custody under Section 104(1) of the Customs Act, 1962, as well as Sections 69 and 70 of the GST Acts, on allegations of tax evasion. The petitioner challenged the arrest, arguing that it was arbitrary, as Section 104(1) of the Customs Act mandates ‘reasons to believe’—a higher standard than the ‘mere suspicion’ threshold under Section 41 of the Cr.P.C., 1973. Additionally, it was contended that in GST-related cases, arrest without prior adjudication of tax liability contravenes principles of natural justice. The procedural legality of the arrest was subsequently challenged before the Supreme Court.

Supreme Court Held

The Hon’ble Supreme Court emphasized that the power of arrest must conform to constitutional safeguards. It was held that under Section 104(1) of the Customs Act, an arrest must be based on substantive material rather than mere suspicion. Regarding GST matters, the Court affirmed that Article 246A grants legislative competence for the levy and collection of GST, with the powers to summon, arrest, and prosecute being ancillary and incidental thereto. Therefore, Sections 69 and 70 of the GST Acts were upheld as constitutionally valid.

List of Cases Reviewed

  • Arvind Kejriwal v. Directorate of Enforcement (2025) 2 SCC 248 (para 46)
  • Gurbaksh Singh Sibbia v. State of Punjab (1980) 2 SCC 565 (para 70)
  • Sushila Aggarwal v. State (NCT of Delhi) (2020) 5 SCC 1 (para 70) followed.
  • Om Prakash v. Union of India (2011) 14 SCC 1 (para 48)
  • State of Gujarat v. Choodamani Parmeshwaran Iyer 2023 SCC OnLine SC 1043 (para 70)
  • Bharat Bhushan v. Director General of GST Intelligence [SLP (Crl.) No. 8525/2024] (para 70) distinguished.

List of Cases Referred to

  • Om Prakash and Another v. Union of India and Another (2011) 14 SCC 1 (para 2)
  • A.R. Antulay v. Ramdas Sriniwas Nayak and Another (1984) 2 SCC 500 (para 13)
  • State of Punjab v. Barkat Ram 3 SCR 338 (para 15)
  • Ramesh Chandra Mehta v. State of West Bengal 2 SCR 461 (para 15)
  • Illias v. Collector of Customs 2 SCR 613 (para 15)
  • Tofan Singh v. State of Tamil Nadu (2021) 4 SCC 1 (para 15)
  • Directorate of Enforcement v. Deepak Mahajan and Another. (1994) 3 SCC 440 (para 17)
  • Shri Gurbaksh Singh Sibbia and Others v. State of Punjab (1980) 2 SCC 565 (para 19)
  • Union of India v. Ashok Kumar Sharma and Others (2021) 12 SCC 674 (para 20)
  • D.K. Basu v. State of West Bengal. (1997) 1 SCC 416 (para 21)
  • Directorate of Revenue Intelligence v. Jugal Kishore Samra (2011) 12 SCC 362 (para 26)
  • Arvind Kejriwal v. Directorate of Enforcement (2025) 2 SCC 248 (para 30)
  • Pankaj Bansal v. Union of India and Others 2023 SCC OnLine SC 1244 (para 31)
  • Prabir Purkayastha v. State of NCT of Delhi (2024) 7 SCC 576 (para 31)
  • Vijay Madanlal Choudhary and Others v. Union of India and Others 2022 SCC OnLine SC 929 (para 31)
  • Ashok Munilal Jain and Another v. Asstt. Director, Directorate of Enforcement (2018) 16 SCC 158 (para 51)
  • Makemytrip (India) Private Limited and Another v. Union of India and Others 2016 SCC OnLine Del 4951 (para 58)
  • Nandini Satpati v. P.L. Dani and Another (1978) 2 SCC 424 (para 65)
  • Poolpandi and Others v. Superintendent, Central Excise and Others (1992) 3 SCC 259 (para 69)
  • Sushila Aggarwal and others v. State (NCT of Delhi) and Another (2020) 5 SCC 1 (para 70)
  • State of Gujarat v. Choodamani Parmeshwaran Iyer and Another 2023 SCC OnLine SC 1043 (para 70)
  • Mineral Area Development Authority and Another v. Steel Authority of India and Another (2024) 10 SCC 1 (para 75)
  • Hans Muller of Nurenburg v. Superintendent, Presidency Jail, Calcutta and Others 1 SCR 1284 (para 75)
  • Elel Hotels & Investments Ltd. and Others v. Union of India (1989) 3 SCC 698 (para 75)
  • State of Rajasthan v. G. Chawla and Another 1958 SCC OnLine SC 33 (para 75)
  • The United Provinces v. Mst. Atiqa Begum and Others AIR 1941 FC 16 1940 SCC OnLine FC 11 (para 75)
  • Express Hotels (P) Ltd. v. State of Gujarat and Another (1989) 3 SCC 677 (para 75)
  • Sardar Baldev Singh v. CIT Delhi and Ajmer 1960 SCC OnLine SC 147 (para 75)
  • R.S. Joshi, Sales Tax Officer, Gujarat and Others v. Ajit Mills Limited and Another (1977) 4 SCC 98 (para 75)
  • Government of India and Others v. Smt. Alka Subhash Gadia and Another (1) SCC 496 (para 5)
  • Union of India v. Padam Narain Aggarwal and Others 2008 (13) SCC 305 (para 7)
  • Adri Dharan Das v. State of W.B. (2005) 4 SCC 303 (para 11).

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