The Central Board of Indirect Taxes and Customs (CBIC) has issued the guidelines pertaining to the arrest and bail in relation to offences punishable under the GST Act, 2017.

The Board has issued the guidelines in compliance of the judgement of the Delhi High Court of Delhi in case of Kshitij Ghildiyal Versus Director General Of Gst Intelligence, Delhi [W.P. (CRL) No. 3770/2024] in which it was held that the grounds of arrest have to be communicated in writing to the arrested person. 

The Board has further relied on the decision of the Supreme Court in the case of Prabir Purkayastha Vs State (NCT of Delhi), Criminal Appeal (D. No. 42896/2023) in which it was held that the ‘reasons for arrest ‘as indicated in the arrest memo are purely formal parameters, viz., to prevent the accused person from committing any further offence; or proper investigation of the offence; to prevent the accused person from causing the evidence of the offence to disappear or tampering with such evidence in any manner.

The Apex Court has held that to prevent the arrested person for making inducement, threat or promise to any person acquainted with the facts of the case so as to dissuade him from disclosing such facts to the Court or to the Investigating Officer. These reasons would commonly apply to any person arrested on charge of crime whereas the ‘grounds of arrest would be required to contain all such details in hand of the Investigating Officer which necessitated the arrest of the accused. Simultaneously, the grounds of arrest informed in writing must convey to the arrested accused.

The board has stated that the grounds of arrest must be explained to the arrested person and also furnished to him in writing as an Annexure to the Arrest Memo. Acknowledgement of the  same should be taken from the arrested person at the time of service of the Arrest Memo.

Read More: These CBIC Guidelines Will Prevent GST Dept. To Undertake Arrest On Technical Grounds

Instruction Details

Instruction No. 01/2025-GST

Date: 13/01/2025