SC Upholds Constitutional Validity of Section 69 GST Arrest Powers

Rakesh Kumar Vs Union of India & Anr. (Supreme Court of India)

Material Facts

The writ petition primarily challenged the constitutional validity of Section 69 of the Central Goods and Services Tax Act, 2017, which empowers GST officials to arrest offenders.

Procedural History

The matter came before the Supreme Court by way of a writ petition challenging the constitutional validity of Section 69 of the CGST Act, 2017.

Legal Issue

Whether Section 69 of the Central Goods and Services Tax Act, 2017, empowering GST officials to arrest offenders, is constitutionally valid.

Relevant Statutory Provision

• Section 69 of the Central Goods and Services Tax Act, 2017.

Court’s Findings and Reasoning

The Supreme Court noted that the constitutional validity of Section 69 of the Central Goods and Services Tax Act, 2017 had already been upheld by a three-Judge Bench of the Court in Radhika Agarwal vs. Union of India & Ors. (2025) 6 SCC 545.

Relying on the said judgment, the Court disposed of the present writ petition in terms of the earlier decision.

Final Ruling

The writ petition was disposed of in terms of the judgment in Radhika Agarwal vs. Union of India & Ors. (2025) 6 SCC 545. Any interim order stood vacated, and pending applications, if any, were also disposed of.

Section 69 of the Central Goods and Services Tax (CGST) Act, 2017

Section 69 of the Central Goods and Services Tax (CGST) Act, 2017 empowers the Commissioner to authorise the arrest of a person if there are reasons to believe that the person has committed specified offences under Section 132 of the Act. The power may be exercised in cases involving offences such as issuing invoices without actual supply of goods or services, availing or passing on fraudulent input tax credit, collecting tax without depositing it with the Government, or other specified offences, subject to the conditions and monetary thresholds prescribed under the Act. Where the offence is cognizable and non-bailable, the authorised officer may arrest the person and produce them before a Magistrate within 24 hours. For non-cognizable and bailable offences, the Deputy Commissioner or Assistant Commissioner is empowered to grant bail. Section 69 forms the statutory framework governing the arrest powers of GST authorities in relation to serious tax offences under the GST law.

FULL TEXT OF THE SUPREME COURT JUDGMENT/ORDER

Present Writ Petition has been filed primarily challenging the constitutional validity of Section 69 of the Central Goods and Services Tax Act, 2017 which empowers GST Officials to arrest the offenders.

The legal validity of the said provision has been upheld by a three Judge Bench of this Court in Radhika Agarwal vs. Union of India & Ors. (2025) 6 SCC 545.

Consequently, the present Writ Petition is disposed of in terms of the aforesaid judgment of this Court.

Interim order, if any, stands vacated.

Writ Petition is disposed of in terms of the signed order which is placed on file.

Pending application(s), if any, shall stand disposed of.