Supreme Court Notice On GST Department Plea Against HC Order Quashing Arrest Over Failure To Serve Grounds

The Supreme Court on Thursday issued notice on the GST Department's plea challenging an Allahabad High Court order that set aside the remand of a person arrested under the Central Goods and Services Tax Act, 2017.

The High Court had found that the grounds of arrest were not shown to have been served before his production before the Magistrate.

The High Court also found that the arrest memo did not mention any annexure containing the grounds of arrest. The court relied on the January 13, 2025 CBIC instruction requiring that the grounds of arrest be furnished in writing as an annexure to the arrest memo.

A bench of Justices M.M. Sundresh and P.B. Varale issued notice in the GST Department's special leave petition.

The court was hearing the department's challenge against the High Court order allowing the habeas corpus petition filed by Jai Kumar Aggarwal, challenging his arrest and remand in proceedings under Section 132(1)(c) of the CGST Act.

Aggarwal was detained during a search at his residence on December 29, 2025 and arrested on January 16, 2026.

He alleged that the grounds of arrest and other mandatory documents were not properly furnished to him before his production before the Magistrate.

The Allahabad High Court held that the remand order suffered from legal infirmity. It found a serious dispute regarding whether the grounds of arrest had been supplied before remand and noted that the arrest memo did not contain the required annexure despite the CBIC Instruction dated January 13, 2025, mandating written grounds of arrest.

The court also held that the principle in Satendra Kumar Antil regarding offences punishable below seven years applied to the case. It set aside the remand order, allowed the habeas corpus petition and directed Aggarwal's release, while leaving it open to the authorities to proceed afresh in accordance with law.